A new way to get to
that magic 20% down payment

The most popular cities and neighborhoods have seen prices rise over the last five years, making it harder for people who work in these places to enter the housing market. 

We’re listening to the needs of prospective homebuyers like you by seeking out innovative solutions to help put more people in the homes they want. That’s where our working relationship with the real estate investment innovator, Unison, comes in.



How Unison can help you
Unison invests alongside you by providing a portion of your 20% down payment (you must contribute a minimum of 5%). With your down payment in place, you can then apply for a Valley mortgage.



Not an additional loan, but an investment
For the time in which you live in your home, you make your monthly mortgage payments to Valley. You do not make any payments to Unison until you sell the home – up to 30 years later.

You can also buy them out after 3 years without having to sell the home. In return, Unison receives a share of any future change in the home’s value. If the home goes up in value, you and Unison both win. If the home goes down in value, Unison shares in the loss with you.


 
 
Unison Invests
 
Buyer Invests
(or more)
Share of the Change in Value – Up or Down
Buyer Unison

10.0%
 
10.0% 65.0% 35.0%
15.0%
5.0%
 
47.5% 52.5%

Expand and speed up your home search
Unison’s funding can give you greater purchasing power. That means you can expand your homebuying search to include more homes and more neighborhoods.

So, if you’re waiting to buy a home while you save up for a down payment, working with Unison can speed up your timeline. This means you could enter the housing market now — rather than waiting months or years and wondering if prices will keep going higher. 


 
 
 
Unison Homebuying Program Highlights
 
  • The homebuyer must put down at least 5% of the purchase price.
 
  • Unison’s share of the home’s change in price depends on the amount of their investment. 
 
  • The homeowner retains all the equity that they build by making monthly mortgage payments. 
 
  • Maximum term is 30 years. At year 30, the homeowner must pay Unison the value of its interest in the home. They can do this by selling the home or buying Unison out. 
 
  • The homeowner can sell their home whenever they choose. If the property is sold in the first three years, Unison does not share in any decrease in value. They can also buy Unison out after 3 years (based on appraisal price). 
 
  • A transaction fee of 2.5% of Unison’s contribution must be paid at closing.
  
 
 
Sample Scenario and Outcome

Homebuyer Purchases Home
 
 
Home purchase price
 
 $750,000

Buyer invests 10%
 
$75,000
Unison invests 10%
$75,000
 

Valley mortgage loan at 80%
 
$600,000


Homeowner Sells 10 Years Later
 
 
Home sale price
 
 $1,125,000

Mortgage balance1
 
-$473,000
Gross equity available
=$652,000
 

Payment to Unison2
 
-$206,250

HOMEOWNER PROCEEDS3
 
=$445,700
 
1.  Assumes a 30 yr. fixed rate loan at 4% interest. Ten years of monthly loan payments brings the loan balance down by $127,000 to $473,000.

2. Increase in home value is $375,000. Unison’s 35% share is $131,250 plus its original investment of $75,000 equals a payment of $206,250.

3. Sale proceeds of $1,125,000 minus $473,000 to mortgage lender minus $206,250 to Unison equals gross proceeds to the homeowner of $445,700. Homeowner will also pay all selling costs If selling costs are 7.5% of the sale price, they’d be $84,375 and the homeowner’s net proceeds would be $361,375.

 
 

Everyone’s homebuying circumstances are different. Valley’s program with Unison is just one of the many solutions we offer to get you into that dream home.  Welcome to a new era at Valley. More innovation, more technology and an enhanced focus on the needs of our customers.  

Click here to speak to one of our knowledgeable home loan consultants who can provide more detail on The Unison HomeBuyer Program.



How does Unison HomeBuyer stack up against a few alternatives?
  • Unison vs. 90% mortgage with PMI: When you finance 90% of the value of the home, you will usually need to pay PMI and will have a higher monthly payment. If you choose Unison HomeBuyer, you could save you up to several hundred dollars per month, which works out to about 15-20% off your monthly payment.
 
  • Unison vs. 2nd mortgage: When you finance a traditional mortgage and a second mortgage, your monthly payments will usually be about 10% higher than if you chose Unison HomeBuyer. That could equal hundreds of dollars per month.
 
  • Unison vs. Gift funds: While getting money from family or friends to pay for a home purchase can be a wonderful thing, it can also complicate your relationship with them. With Unison HomeBuyer, you partner with us to get the funds you need and you share a specific portion of any future change in the home’s value with Unison.
 
The Recap
  • Unison provides a portion of the down payment in exchange for a portion of the future change in the value of the home.
 
  • You don’t pay Unison anything until you sell the home — up to 30 years later. If the home increases in value, they share a portion of the gain. If the home loses value, they share a portion of the loss.
 
  • This is not a loan, so they don’t charge interest, and they don’t receive monthly payments. 

Get Started
If you’re ready to buy a home, click here to see how Valley National Bank and Unison can help you get the home you really want.

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