Unison Home Ownership Investors, a shared equity provider, raised $40 million in its Series B round of funding. F-Prime Capital, Citi Ventures and Royal Bank of Canada led the fundraising charge, but the lion’s share came from F-Prime, whose partner David Jegen will join Unison’s board of directors as part of the funding round.
Unison provides alternative home financing solutions through two programs: HomeBuyer and HomeOwner.
HomeBuyer allows homebuyers to double or quadruple their down payments, and HomeOwner allows homeowners to unlock a portion of their home equity without borrowing.
Unison provides the money for up to 30 years without interest or monthly payments, and shares in the equity generated by the house, should it appreciate over time. Conversely, if the house loses value, Unison shares in that loss.
"I built Unison with homebuyers, homeowners and institutional investors top of mind and to bridge two massive needs: provide a form of capital for consumers and make residential real estate an investable asset class. In the build out, Unison was forced to ride out the market collapse, which only strengthened our resolve and solidified our belief that the platform could survive anything," Unison CEO Thomas Sponholtz said in a statement.
"Now a decade later, we are the leaders in the homeownership investment category. We have brought together government officials, lenders, institutional investors and other thought leaders to solve America's home affordability crisis. By providing the only new way to finance a home since the mortgage was introduced in 1781, we are liberating consumers from debt-only solutions that have saturated the marketplace," he added.
According to its release, Unison will use the capital to fuel its growth initiatives, which include hiring talent, taking on new markets and developing its technological platform.
"As housing affordability continues to decrease, especially in urban areas, Unison brings a new financial solution for homeownership that benefits consumers, lenders and institutional investors," Citi Ventures Managing Director and co-Head of Venture Investing Arvind Purushotham said in a statement.
"We're excited to join Unison on its mission of providing homeowners with accessible financing options."