If I choose a Unison equity sharing agreement, can I still refinance in the future?

Frequently Asked Questions

If I choose a Unison equity sharing agreement, can I still refinance in the future?

You can refinance, but there are restrictions. If you have an existing mortgage or if you obtain a new one, your Unison agreement will be a form of subordinate financing. It’s likely that some mortgage lenders will decline to provide new loans to you because you have subordinate financing from Unison. In particular, lenders that make loans conforming to Fannie Mae/Freddie Mac guidelines may decline your application, as these guidelines do not allow subordinate financing that shares in equity or home appreciation. If you are considering refinancing your mortgage in the near future, you may wish to do so before taking out a Unison equity sharing agreement.

Also, it is important to understand that, as part of the agreement, we will set something called the Maximum Authorized Debt Limit. This is a limit to the total amount of debt secured by your house.

This limit is set based on your home value and financial situation at the time of your agreement. It is a fixed amount and does not adjust upwards as your home appreciates in value.

If you need another loan secured by your home while you’re part of our agreement, you must stay under your Maximum Authorized Debt limit. The Unison agreement itself does not count towards the limit – remember, our program is not debt!

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