Unison’s groundbreaking investment program is being piloted by Freddie Mac, making this “the first time a 'shared-equity' program with no interest payments has been approved by a federal mortgage agency”.  The program is covered by Unison Home Ownership Investors (formerly FirstREX), and allows for homebuyers to get up to half of a 20% down payment in exchange for home equity. This gives customers increased buying power as well as the opportunity to achieve the dream of homeownership.

First California Mortgage Company (“First Cal”) is one of seven lenders who are originating mortgages with Unison’s down payment assistance program, currently being offered in California, Washington state, and the Washington D.C. area. First Cal’s Chief Operating Officer, Joe McKone, recounted of one first-time buyer who obtained a mortgage through First Cal. Though the borrower earned a high income, he was still faced with the difficulty of saving for a down payment due to his student loans. With Unison’s innovative program, the buyer was able to buy a Maryland home that was at least $75,000 more than he could have afforded otherwise. “The buyer, a well-educated, young professional, now saves more than $1,000 a month on his monthly mortgage bill compared to what he used to pay in rent,” said McKone.

So far, 20 loans have closed with Unison down payment assistance, but it is expected that thousands will be originated over the next year. McKone is hopeful that over the next year 10% of First Cal originations will be Unison-boosted.

For more information about Unison and First Cal's participation in the program, read the full article on the Inman Newsflash website.