Valley National Bank and Unison’s New Five Percent Down Payment Program Help Home Buyers Reap the Benefits of an 80 Percent LTV Mortgage
Innovative, Low Down Payment Funding Solution Increases Purchasing Power for Prospective Home Buyers in New York, New Jersey and Pennsylvania
SAN FRANCISCO and WAYNE, N.J., Feb. 28, 2018 /PRNewswire/ — Unison Home Ownership Investors, the leading provider of home ownership investments, and Valley National Bank, the wholly-owned subsidiary of Valley National Bancorp (NYSE: VLY) , today announced the launch of the residential real estate industry’s first five percent down payment program in conjunction with an 80 percent LTV mortgage. The innovative new program provides incredible short and long-term savings for the home buyer.
Together, the Unison HomeBuyer program and Valley National Bank’s lending products enable prospective buyers to purchase a home without the financial burden of putting down a hefty 10 or 20 percent down payment. Instead, the buyer can put down five percent, Unison will make a home ownership investment and contribute 15 percent, allowing the home buyer to benefit from a 20 percent down payment and an 80 percent LTV mortgage. In return for the investment, Unison shares in the change in value of the home – up or down. If the home appreciates, Unison and the homeowner profit. If the home depreciates, both lose together.
For the home buyer, the ability to have an 80 percent LTV mortgage means:
- No costly private mortgage insurance
- Lower monthly payments
- Increased purchasing power
- The ability to keep more cash on hand
“Buying a home is one of the biggest decisions made in a person’s lifetime, and we are always looking for new, innovative ways to increase accessibility to home ownership,” said Kevin Chittenden, Valley’s Executive Vice President and Chief Residential Lending officer. “We chose to work with Unison because they share in our mission to help make the process as straightforward as possible for the buyer. Through this five percent down payment program, not only are we helping more people purchase their dream homes, but we’re taking a major step forward for the home financing industry.”
Real estate agents are also embracing this working relationship as the program quadruples the client’s down payment, allowing them to put down a full 20 percent or more. As a result, realtors can expand their offering to include homes and neighborhoods previously out of reach.
“With Valley National Bank, this first of its kind five percent down payment program opens the residential real estate market to more potential buyers,” said Thomas Sponholtz, chairman and CEO, Unison. “By partnering with buyers and investing alongside them in their down payment, we liberate them from the burden of taking on too much debt and put them in a stronger position for success.”
This program is currently available in New York, New Jersey and Pennsylvania, with plans for further regional expansion in 2018.
About Valley National Bank
Valley National Bancorp is a regional bank holding company headquartered in Wayne, New Jerseywith over $28 billion in assets. Its principal subsidiary, Valley National Bank, currently operates over 230 branch locations in northern and central New Jersey, the New York City boroughs of Manhattan, Brooklyn, Queens and Long Island, Florida and Alabama. Valley National Bank is one of the largest commercial banks headquartered in New Jersey and is committed to providing the most convenient service, the latest in product innovations and an experienced and knowledgeable staff with a high priority on friendly customer service. For more information about Valley National Bank and its products and services, please visit www.valleynationalbank.com or call our Customer Service Center at 800-522-4100.
Unison is the leading provider of home ownership investments, modernizing home financing through long-term partnerships. Unison works with lenders, regulators and institutional investors to integrate home ownership investing into the U.S. housing finance system. Unison HomeBuyer helps purchasers buy the home they want with less debt and risk, typically by doubling the down payment. The larger down payment makes it easier to qualify for a loan, increases buying power, lowers the monthly payment and/or allows a buyer to reserve cash. Unison HomeOwner provides current homeowners with cash to eliminate debt, remodel, pay for school, invest or as a cash cushion, without the added debt or payments of a home equity loan or HELOC.
Unison’s platforms have received prestigious recognitions including the FinovateSpring 2017 and Benzinga 2017 Best of Show awards. Headquartered in San Francisco, Unison operates in 13 states and has secured over $300M in total capital. For additional information, visit https://www.unison.com.