Why buy a home?The financial benefits of homeownership over renting are clear. But for first time home buyers in the middle of an affordable housing shortage, owning a home seems aspirational at best and impossible at worst. If you are looking to avoid the fees that come with private mortgage insurance, you need a down payment that is 20% of the home's cost. Fortunately, with the Unison HomeBuyer program, you only need to save up 10% of the down payment—and in some cases, as little as 5%. Unison will pitch in the remaining 10-15% to help you avoid PMI and get a better mortgage rate. With Unison, there are no monthly payments, and Unison is paid from a portion of your home's appreciated value when you sell in the future, up to 30 years later.
How can I build home equity?There are two ways to increase your home equity:
- Increase the property value of your home.
- Decrease the amount owed on your loan.