#Jim Riccitelli

[singeratlarge]

SUNDAY MUSIC VIDEO MATINEE: Davy Jones + Micky Dolenz, Live at Epcot, May, 7th, 2011 (complete 3rd set of the day) https://www.youtube.com/watch?v=yLydK9B_EmA ...Starting in 1995, Davy Jones and band appeared annually at Disney Epcot in Orlando, FL. He was routinely booked for 3-5 days, 3 sets a day, with dates usually set around Mother’s Day (though I recall some as early as March). People from around the world attended, with some scheduling their vacations around it. Sometimes guests such as Micky Dolenz or Flo & Eddie would drop in. For me it was an opportunity to catch up with Floridian family and friends. 

Davy brought me in on keyboards for the 1997 series (I remember Sandy Gennaro winging broken drum sticks at me) and every year from 2005 to 2011. We had a lot of great food, fun, laughs, and good times, and the Disney staff treated us like royalty. Hard to believe years have flown by since we were up on that hot stage by the lake…

#davyjones #monkees #epcot #disney #orlando #johnnyjblair #felipetorres #ericbiondo #davidrobicheau #avivamaloney #mickydolenz

[jeremiahgardner]

Chatting about a New Age of Home Buying with Unison Founder, Thomas Sponholtz and Co-CEO Jim Riccitelli -… https://t.co/9kzWJbSfWo

Chatting about a New Age of Home Buying with Unison Founder, Thomas Sponholtz and Co-CEO Jim Riccitelli - https://t.co/6c2QOGo8l3 http://pic.twitter.com/fYD029YrHN

— Jeremiah Gardner (@JeremiahGardner) October 24, 2017

via Twitter https://twitter.com/JeremiahGardner October 24, 2017 at 08:05AM

[realestate63141]

Buyers Alert: Should You Trade Future Home Equity for Down Payment Help?

Bet_Noire/iStock

Fewer Americans are homeowners these days—but it’s not because they don’t want to be. Home prices are rising, mortgage rates are up, and saving for a down payment while trying to keep up with sky-high student loan, rent, and just-about-everything-else payments is no easy feat.

Enter Unison Home Ownership Investors. The San Francisco-based company (formerly called FirstREX) is helping aspiring home buyers come up with their down payment—in exchange for a hefty stake in their abode. Hey, nothing in life is free. And this deal has its share of strings attached.

The loan product is designed for those with strong credit who can secure a standard mortgage and come up with at least 10% of that down payment. It was originally designed for more expensive properties with jumbo mortgages and was expanded to folks seeking smaller mortgages over the summer.

“It makes it a lot easier for more people to afford homeownership,” Jim Riccitelli, co-CEO of Unison, says. “They don’t have to settle for a smaller home or an area that’s not attractive to them.”

How to score help with a down payment

Here’s how it works: Buyers trade their future home equity for the money they need to come up with a 20% down payment—the magic number that typically saves them from having to pay mortgage insurance each month.

They then have 30 years to pay back the investment, and no interest is charged. When they sell the property (or when the 30 years are up), they’re on the hook for the initial investment. And they are not permitted to rent out the home.

“We’re an investor in the property,” Riccitelli says. But “we don’t have any occupancy rights. They own their home.” That means owners are responsible for leaky roofs, property taxes, insurance, and everything else.

But here’s a big catch. If the home has gained value, the owners must fork over what they owe plus 35% of the increased property value. So if they borrowed $20,000 on a $200,000 home and prices shot up to $250,000, they’d need to pay back that $20,000—plus an additional $87,500.

“The downside to the buyer is that there is an unknown cost to the funding,” Riccitelli says. “It’s possible that the funding may have cost more than if they had borrowed the money.”

If the home value is still the same, buyers need only to refund Unison’s investment.

The silver lining is that if the home decreases in value, the buyer owes what Unison gave, minus 35%. So the buyers who were given $20,000 by Unison would need to pay the company back only $13,000.

To make sure buyers understand the risks, they are required to read a guide, watch a video, and chat over the telephone with a specialist before signing up. Both borrowers, if they are a couple, must also pass a review process similar to a test with 20 questions.

Who’s eligible for the down payment assistance?

Unison’s clients are typically millennials with the jobs to afford the pricey mortgage payments in expensive cities like San Francisco and New York. But although cash is flowing in, they struggle to save up for those huge down payments and keep up with their student loan payments and exorbitant rents, Riccitelli says. Other fans of the program simply prefer to save for retirement rather than a home purchase.

The loan product is available in 12 states and the District of Columbia: Arizona, California, Connecticut, Oregon, Washington, Illinois, Massachusetts, Maryland, New Jersey, New York, Pennsylvania, Virginia, and Washington, DC. It is slated to expand to eight more states this year.

So far, it’s been a boon for Ricardo and Catherine Soto when they wanted to buy a $650,000 home in Chula Vista, CA, according to the Los Angeles Times. The couple, who have three teenagers, were able to come up with only a 10% down payment on the San Diego-area property, even after selling their old home.

So to come up with 20%, and therefore avoid paying mortgage insurance, they turned to Unison. The company chipped in $65,000 toward the down payment.

“For our personal situation, what was most critical was having access to discretionary income because our kids will be going on to college,” Ricardo, 50, told the Times. “Having that lower payment and knowing I can count on that was really important.”

He was also pleased to know that if the home depreciates in value, he won’t be required to repay everything he borrowed.

“I’m not planning 30 years out,” he told the Times. “I’m just hoping to get through the next eight.”

What to consider before signing away your future home equity

Cash-strapped buyers shouldn’t just rush to sign up, though, cautions financial planner Jenna Rogers of Mission Wealth, in Santa Barbara, CA. They might be losing a good chunk of money if they do, as home values are projected to keep going up.

“Over the long run, [it] can be really expensive,” Rogers says of giving up home equity. “My recommendation is if someone is not able to come up with the down payment for a home via current savings/investments, they should continue saving and postpone the purchase.”

There are also other down payment assistance programs available, offered through local governments, that won’t cost buyers quite so much—if anything at all, says Sean Moss, senior vice president of operations at Down Payment Resource. The Atlanta-based company connects buyers, real estate agents, and lenders to various aid programs throughout the country.

“The equity in your home is part of your retirement nest,” Moss says. “There are [other] programs that will get you thousands to tens of thousands of dollars, without giving up equity in your home.”

The post Buyers Alert: Should You Trade Future Home Equity for Down Payment Help? appeared first on Real Estate News & Advice | realtor.com®.

from DIYS http://ift.tt/2k1Hh8P

[gillespialfredoe01806ld]

Buyers Alert: Should You Trade Future Home Equity for Down Payment Help?

Bet_Noire/iStock

Fewer Americans are homeowners these days—but it’s not because they don’t want to be. Home prices are rising, mortgage rates are up, and saving for a down payment while trying to keep up with sky-high student loan, rent, and just-about-everything-else payments is no easy feat.

Enter Unison Home Ownership Investors. The San Francisco-based company (formerly called FirstREX) is helping aspiring home buyers come up with their down payment—in exchange for a hefty stake in their abode. Hey, nothing in life is free. And this deal has its share of strings attached.

The loan product is designed for those with strong credit who can secure a standard mortgage and come up with at least 10% of that down payment. It was originally designed for more expensive properties with jumbo mortgages and was expanded to folks seeking smaller mortgages over the summer.

“It makes it a lot easier for more people to afford homeownership,” Jim Riccitelli, co-CEO of Unison, says. “They don’t have to settle for a smaller home or an area that’s not attractive to them.”

How to score help with a down payment

Here’s how it works: Buyers trade their future home equity for the money they need to come up with a 20% down payment—the magic number that typically saves them from having to pay mortgage insurance each month.

They then have 30 years to pay back the investment, and no interest is charged. When they sell the property (or when the 30 years are up), they’re on the hook for the initial investment. And they are not permitted to rent out the home.

“We’re an investor in the property,” Riccitelli says. But “we don’t have any occupancy rights. They own their home.” That means owners are responsible for leaky roofs, property taxes, insurance, and everything else.

But here’s a big catch. If the home has gained value, the owners must fork over what they owe plus 35% of the increased property value. So if they borrowed $20,000 on a $200,000 home and prices shot up to $250,000, they’d need to pay back that $20,000—plus an additional $87,500.

“The downside to the buyer is that there is an unknown cost to the funding,” Riccitelli says. “It’s possible that the funding may have cost more than if they had borrowed the money.”

If the home value is still the same, buyers need only to refund Unison’s investment.

The silver lining is that if the home decreases in value, the buyer owes what Unison gave, minus 35%. So the buyers who were given $20,000 by Unison would need to pay the company back only $13,000.

To make sure buyers understand the risks, they are required to read a guide, watch a video, and chat over the telephone with a specialist before signing up. Both borrowers, if they are a couple, must also pass a review process similar to a test with 20 questions.

Who’s eligible for the down payment assistance?

Unison’s clients are typically millennials with the jobs to afford the pricey mortgage payments in expensive cities like San Francisco and New York. But although cash is flowing in, they struggle to save up for those huge down payments and keep up with their student loan payments and exorbitant rents, Riccitelli says. Other fans of the program simply prefer to save for retirement rather than a home purchase.

The loan product is available in 12 states and the District of Columbia: Arizona, California, Connecticut, Oregon, Washington, Illinois, Massachusetts, Maryland, New Jersey, New York, Pennsylvania, Virginia, and Washington, DC. It is slated to expand to eight more states this year.

So far, it’s been a boon for Ricardo and Catherine Soto when they wanted to buy a $650,000 home in Chula Vista, CA, according to the Los Angeles Times. The couple, who have three teenagers, were able to come up with only a 10% down payment on the San Diego-area property, even after selling their old home.

So to come up with 20%, and therefore avoid paying mortgage insurance, they turned to Unison. The company chipped in $65,000 toward the down payment.

“For our personal situation, what was most critical was having access to discretionary income because our kids will be going on to college,” Ricardo, 50, told the Times. “Having that lower payment and knowing I can count on that was really important.”

He was also pleased to know that if the home depreciates in value, he won’t be required to repay everything he borrowed.

“I’m not planning 30 years out,” he told the Times. “I’m just hoping to get through the next eight.”

What to consider before signing away your future home equity

Cash-strapped buyers shouldn’t just rush to sign up, though, cautions financial planner Jenna Rogers of Mission Wealth, in Santa Barbara, CA. They might be losing a good chunk of money if they do, as home values are projected to keep going up.

“Over the long run, [it] can be really expensive,” Rogers says of giving up home equity. “My recommendation is if someone is not able to come up with the down payment for a home via current savings/investments, they should continue saving and postpone the purchase.”

There are also other down payment assistance programs available, offered through local governments, that won’t cost buyers quite so much—if anything at all, says Sean Moss, senior vice president of operations at Down Payment Resource. The Atlanta-based company connects buyers, real estate agents, and lenders to various aid programs throughout the country.

“The equity in your home is part of your retirement nest,” Moss says. “There are [other] programs that will get you thousands to tens of thousands of dollars, without giving up equity in your home.”

The post Buyers Alert: Should You Trade Future Home Equity for Down Payment Help? appeared first on Real Estate News & Advice | realtor.com®.

from DIYS http://ift.tt/2k1Hh8P

[realtor10036]

Buyers Alert: Should You Trade Future Home Equity for Down Payment Help?

Bet_Noire/iStock

Fewer Americans are homeowners these days—but it’s not because they don’t want to be. Home prices are rising, mortgage rates are up, and saving for a down payment while trying to keep up with sky-high student loan, rent, and just-about-everything-else payments is no easy feat.

Enter Unison Home Ownership Investors. The San Francisco-based company (formerly called FirstREX) is helping aspiring home buyers come up with their down payment—in exchange for a hefty stake in their abode. Hey, nothing in life is free. And this deal has its share of strings attached.

The loan product is designed for those with strong credit who can secure a standard mortgage and come up with at least 10% of that down payment. It was originally designed for more expensive properties with jumbo mortgages and was expanded to folks seeking smaller mortgages over the summer.

“It makes it a lot easier for more people to afford homeownership,” Jim Riccitelli, co-CEO of Unison, says. “They don’t have to settle for a smaller home or an area that’s not attractive to them.”

How to score help with a down payment

Here’s how it works: Buyers trade their future home equity for the money they need to come up with a 20% down payment—the magic number that typically saves them from having to pay mortgage insurance each month.

They then have 30 years to pay back the investment, and no interest is charged. When they sell the property (or when the 30 years are up), they’re on the hook for the initial investment. And they are not permitted to rent out the home.

“We’re an investor in the property,” Riccitelli says. But “we don’t have any occupancy rights. They own their home.” That means owners are responsible for leaky roofs, property taxes, insurance, and everything else.

But here’s a big catch. If the home has gained value, the owners must fork over what they owe plus 35% of the increased property value. So if they borrowed $20,000 on a $200,000 home and prices shot up to $250,000, they’d need to pay back that $20,000—plus an additional $87,500.

“The downside to the buyer is that there is an unknown cost to the funding,” Riccitelli says. “It’s possible that the funding may have cost more than if they had borrowed the money.”

If the home value is still the same, buyers need only to refund Unison’s investment.

The silver lining is that if the home decreases in value, the buyer owes what Unison gave, minus 35%. So the buyers who were given $20,000 by Unison would need to pay the company back only $13,000.

To make sure buyers understand the risks, they are required to read a guide, watch a video, and chat over the telephone with a specialist before signing up. Both borrowers, if they are a couple, must also pass a review process similar to a test with 20 questions.

Who’s eligible for the down payment assistance?

Unison’s clients are typically millennials with the jobs to afford the pricey mortgage payments in expensive cities like San Francisco and New York. But although cash is flowing in, they struggle to save up for those huge down payments and keep up with their student loan payments and exorbitant rents, Riccitelli says. Other fans of the program simply prefer to save for retirement rather than a home purchase.

The loan product is available in 12 states and the District of Columbia: Arizona, California, Connecticut, Oregon, Washington, Illinois, Massachusetts, Maryland, New Jersey, New York, Pennsylvania, Virginia, and Washington, DC. It is slated to expand to eight more states this year.

So far, it’s been a boon for Ricardo and Catherine Soto when they wanted to buy a $650,000 home in Chula Vista, CA, according to the Los Angeles Times. The couple, who have three teenagers, were able to come up with only a 10% down payment on the San Diego-area property, even after selling their old home.

So to come up with 20%, and therefore avoid paying mortgage insurance, they turned to Unison. The company chipped in $65,000 toward the down payment.

“For our personal situation, what was most critical was having access to discretionary income because our kids will be going on to college,” Ricardo, 50, told the Times. “Having that lower payment and knowing I can count on that was really important.”

He was also pleased to know that if the home depreciates in value, he won’t be required to repay everything he borrowed.

“I’m not planning 30 years out,” he told the Times. “I’m just hoping to get through the next eight.”

What to consider before signing away your future home equity

Cash-strapped buyers shouldn’t just rush to sign up, though, cautions financial planner Jenna Rogers of Mission Wealth, in Santa Barbara, CA. They might be losing a good chunk of money if they do, as home values are projected to keep going up.

“Over the long run, [it] can be really expensive,” Rogers says of giving up home equity. “My recommendation is if someone is not able to come up with the down payment for a home via current savings/investments, they should continue saving and postpone the purchase.”

There are also other down payment assistance programs available, offered through local governments, that won’t cost buyers quite so much—if anything at all, says Sean Moss, senior vice president of operations at Down Payment Resource. The Atlanta-based company connects buyers, real estate agents, and lenders to various aid programs throughout the country.

“The equity in your home is part of your retirement nest,” Moss says. “There are [other] programs that will get you thousands to tens of thousands of dollars, without giving up equity in your home.”

The post Buyers Alert: Should You Trade Future Home Equity for Down Payment Help? appeared first on Real Estate News & Advice | realtor.com®.

from DIYS http://ift.tt/2k1Hh8P

[topinforma]

New Post has been published on Mortgage News

New Post has been published on http://bit.ly/2jfao4P

This company will help with a down payment, but it wants a stake in your new home - Los Angeles Times

When Ricardo and Catherine Soto were looking to buy a home in Chula Vista, they knew that even after selling their old house in El Cajon they would be able to afford a down payment of only about 10%.

But when buying a home, 20% is the magic number. It means not only borrowing less but also avoiding mortgage insurance, which can cost hundreds of dollars a month.

Some cash-strapped home buyers might have opted to tap a relative or retirement savings, but the Sotos tried something new. When they bought their home for $650,000 in September, the couple came up with the 20% after all — thanks to an unusual arrangement with a newcomer to the mass mortgage market.

Unison, a 12-year-old San Francisco company, offered to match the $65,000 that the Sotos brought to the table in exchange for what amounts to an ownership stake in their house.

The Sotos don’t have to pay anything back — not for a while, at least. But when the couple sell their house they will owe Unison the $65,000 it invested, plus 35% of the value their home gains. Should the market suffer a setback, Unison will share in the loss.

The company, formerly called FirstREX, is one of a handful of firms developing novel financial products aimed at helping buyers afford increasingly expensive homes now that the market has recovered from last decade’s housing bust.

It’s harder than ever to buy a house right now. Credit is still very hard to get.— Jim Riccitelli, Unison co-chief executive

Others, including San Francisco start-up Point, offer similar cash-for-equity arrangements for existing homeowners, but, for now, don’t work with home buyers.

For the last few years, Unison has offered its down-payment product to buyers of pricey homes who need so-called jumbo mortgages. Now the company is going mass market.

It’s working directly with mortgage lenders to offers its down-payment program to buyers looking for ordinary home loans. Government-backed mortgage agency Freddie Mac will purchase loans made to Unison customers through what the agency described as a “very limited pilot.”

Unison’s program could help some buyers get into homes they otherwise could not afford. But housing finance watchers don’t see this as a return to the kind of high-risk lending that sparked last decade’s financial crisis. Unison customers must have good credit, qualify for a standard mortgage and make at least a 10% down payment — much more than what’s required for loans insured by the Federal Housing Administration, for instance.

Still, deals with Unison and other firms are novel and come with a big tradeoff: In exchange for a smaller mortgage, buyers give up a big chunk of the value their homes might gain.

Laurie Goodman, co-director of the housing policy finance center at research group Urban Institute, said it’s important for home buyers to know what they’re getting into.

“Saving money up front in exchange for a share of the upside is a legitimate decision, but it’s one the buyer needs to fully understand,” she said.

For the Sotos, the decision came down not to how much value their home might gain or lose, but the size of the monthly payment.

“For our personal situation, what was most critical was having access to discretionary income because our kids will be going on to college,” said Ricardo Soto, 50, a father of three teenagers. “Having that lower payment and knowing I can count on that was really important.”

Unison is working with four mortgage lenders, including Orange County’s LoanDepot, one of the nation’s largest mortgage originators, and it has deals with three more. Unison is already available to home buyers in California, New York and 11 other states, and will be available in eight more this year.

Sears is selling its Craftsman tool brand to Stanley Black & Decker

Lauren Zumbach

Sears Holdings Corp. will sell its well-known Craftsman tool brand to Stanley Black & Decker, the latest in a recent flurry of moves the retailer is making to generate cash after at least five money-losing years.

The agreement announced Thursday calls for Stanley to pay $525 million when the deal…

Sears Holdings Corp. will sell its well-known Craftsman tool brand to Stanley Black & Decker, the latest in a recent flurry of moves the retailer is making to generate cash after at least five money-losing years.

The agreement announced Thursday calls for Stanley to pay $525 million when the deal…

(Lauren Zumbach)

With tighter mortgage-lending standards, home prices near pre-recession highs and expensive rents making it difficult for would-be home buyers to save for a down payment, Unison co-Chief Executives Jim Riccitelli and Thomas Sponholtz say they think that there will be healthy demand for their down-payment program.

“It’s harder than ever to buy a house right now,” Riccitelli said. “Credit is still very hard to get.”

They see demand not only from home buyers but from investors. Before founding Unison, Sponholtz worked for Barclays Global Investors, where he managed investments in bonds for pension funds, endowments and other institutions.

Those investors, he said, want to invest in the housing market. For pension funds especially, the cost of housing has a direct impact on how much they need to earn on their investments because housing is one of the biggest costs pensioners have to cover.

“Housing has an inherent appeal to an institutional investor,” said John Kerrigan, chief investment officer for Santa Clara University, which has invested some of its endowment in Unison. “If housing declines, it is likely that the obligations of a pension or endowment have declined. And if housing is increasing it is likely that the obligations of a pension or endowment have also increased.”

There are other ways to invest in the housing market, such as publicly traded companies that own apartments and single-family homes for rent. But those companies have to cover the cost of vacancies, maintenance and property management.

“What we do is offer pensions and endowments very pure exposure to home prices,” Sponholtz said.

Here’s how it works: Buyers have to qualify for a mortgage and be able to make a down payment of at least 10% on their own.

In a typical deal, Unison will match that 10% down payment, but the company will do smaller and larger deals. For example, it might match a 12.5% down payment, or put up as little as 5% if the buyer can put up more. Unison gets that money back, plus gains or losses, when the home is resold.

If homeowners haven’t sold or don’t want to sell after 30 years, they’re obligated to get an appraisal of the house’s value and cash Unison out, which could require taking out a home equity loan.

After the deal closes, the buyer takes possession of the house and is responsible for monthly mortgage payments, taxes, insurance and maintenance.

Unison’s deals are structured as an option — that is, in exchange for help with the down payment, the company is buying the right to acquire a set percentage of the home at a later date.

[singeratlarge]

HAPPY BIRTHDAY to Nico Assumpção, Kathleen Battle, Danny Bonaduce, Mickey Bradley, Dave “Baby” Cortez, Cliff Fish, Dan Fogelberg, Don Ho, Lee Hyla, Midori Ito, Luis Mariano, Paul & Linda McCartney’s 1971 “Back Seat of my Car” single, Clayton Merrill, Mulgrew Miller, Big Chief Russell Moore, Annie Oakley, Kamya Panjabi, Ric Parnell, Elvis Presley’s 1956 “Don’t Be Cruel” single, Son Seals, Feargal Sharkey, George Shearing, "Big Mama" Thornton’s 1952 single “Hound Dog,” Charles Williams, Jim Yates, and Screamin’ Steve Barlotta, band leader of The Sensational Soul Cruisers and former saxophonist for Davy Jones (Monkees). Steve performs in this video from the early 90s. Creating it was the first major project I did with Davy Jones, the Monkee who also kept busy as a solo act. He cut this track in 1993 with his then-road band: Screamin’ Steve + Wayne Avers (guitar & vocals), Jerry Renino (bass, music director, & vocals), Jimmy Riccitelli (keyboards & vocals), & VJ Riccitelli (drums). The music track was mixed by Grammy-winning engineer Rusty Richards (Julie Miller, Brian Wilson). I was brought in to edit the video and sweeten the tracks—Davy and I spent hours curating through footage with the goal of making a fun collage around the band’s live performance. He released it as a VHS video single with a 1992 live version of "Girl" as the second cut (this edition of the video was remastered in 2021). Meanwhile, happy birthday Steve—keep tootin’ and Soul Cruisin’ and be well!

https://www.youtube.com/watch?v=3OnB7Qls5w8

#davyjones #monkees #daydreambeliever #johnstewart #wayneavers #johnnyjblair #stevebarlotta #saxophone #musicvideo #newjersey

[topinforma]

New Post has been published on Mortgage News

New Post has been published on http://bit.ly/2i1fVjv

This company will help with a down payment, but it wants a stake in your new home

When Ricardo and Catherine Soto were looking to buy a home in Chula Vista, they knew that even after selling their old house in El Cajon they would be able to afford a down payment of only about 10%.

But when buying a home, 20% is the magic number. It means not only borrowing less but also avoiding mortgage insurance, which can cost hundreds of dollars a month.

Some cash-strapped home buyers might have opted to tap a relative or retirement savings, but the Sotos tried something new. When they bought their home for $650,000 in September, the couple came up with the 20% after all — thanks to an unusual arrangement with a newcomer to the mass mortgage market.

Unison, a 12-year-old San Francisco company, offered to match the $65,000 that the Sotos brought to the table in exchange for what amounts to an ownership stake in their house.

The Sotos don’t have to pay anything back — not for a while, at least. But when the couple sell their house they will owe Unison the $65,000 it invested, plus 35% of the value their home gains. Should the market suffer a setback, Unison will share in the loss.

The company, formerly called FirstREX, is one of a handful of firms developing novel financial products aimed at helping buyers afford increasingly expensive homes now that the market has recovered from last decade’s housing bust.

It’s harder than ever to buy a house right now. Credit is still very hard to get.— Jim Riccitelli, Unison co-chief executive

Others, including San Francisco start-up Point, offer similar cash-for-equity arrangements for existing homeowners, but, for now, don’t work with home buyers.

For the last few years, Unison has offered its down-payment product to buyers of pricey homes who need so-called jumbo mortgages. Now the company is going mass market.

It’s working directly with mortgage lenders to offers its down-payment program to buyers looking for ordinary home loans. Government-backed mortgage agency Freddie Mac will purchase loans made to Unison customers through what the agency described as a “very limited pilot.”

Unison’s program could help some buyers get into homes they otherwise could not afford. But housing finance watchers don’t see this as a return to the kind of high-risk lending that sparked last decade’s financial crisis. Unison customers must have good credit, qualify for a standard mortgage and make at least a 10% down payment — much more than what’s required for loans insured by the Federal Housing Administration, for instance.

Still, deals with Unison and other firms are novel and come with a big tradeoff: In exchange for a smaller mortgage, buyers give up a big chunk of the value their homes might gain.

Laurie Goodman, co-director of the housing policy finance center at research group Urban Institute, said it’s important for home buyers to know what they’re getting into.

“Saving money up front in exchange for a share of the upside is a legitimate decision, but it’s one the buyer needs to fully understand,” she said.

For the Sotos, the decision came down not to how much value their home might gain or lose, but the size of the monthly payment.

“For our personal situation, what was most critical was having access to discretionary income because our kids will be going on to college,” said Ricardo Soto, 50, a father of three teenagers. “Having that lower payment and knowing I can count on that was really important.”

Unison is working with four mortgage lenders, including Orange County’s LoanDepot, one of the nation’s largest mortgage originators, and it has deals with three more. Unison is already available to home buyers in California, New York and 11 other states, and will be available in eight more this year.

Sears is selling its Craftsman tool brand to Stanley Black & Decker

Lauren Zumbach

Sears Holdings Corp. will sell its well-known Craftsman tool brand to Stanley Black & Decker, the latest in a recent flurry of moves the retailer is making to generate cash after at least five money-losing years.

The agreement announced Thursday calls for Stanley to pay $525 million when the deal…

Sears Holdings Corp. will sell its well-known Craftsman tool brand to Stanley Black & Decker, the latest in a recent flurry of moves the retailer is making to generate cash after at least five money-losing years.

The agreement announced Thursday calls for Stanley to pay $525 million when the deal…

(Lauren Zumbach)

With tighter mortgage-lending standards, home prices near pre-recession highs and expensive rents making it difficult for would-be home buyers to save for a down payment, Unison co-Chief Executives Jim Riccitelli and Thomas Sponholtz say they think that there will be healthy demand for their down-payment program.

“It’s harder than ever to buy a house right now,” Riccitelli said. “Credit is still very hard to get.”

They see demand not only from home buyers but from investors. Before founding Unison, Sponholtz worked for Barclays Global Investors, where he managed investments in bonds for pension funds, endowments and other institutions.

Those investors, he said, want to invest in the housing market. For pension funds especially, the cost of housing has a direct impact on how much they need to earn on their investments because housing is one of the biggest costs pensioners have to cover.

“Housing has an inherent appeal to an institutional investor,” said John Kerrigan, chief investment officer for Santa Clara University, which has invested some of its endowment in Unison. “If housing declines, it is likely that the obligations of a pension or endowment have declined. And if housing is increasing it is likely that the obligations of a pension or endowment have also increased.”

There are other ways to invest in the housing market, such as publicly traded companies that own apartments and single-family homes for rent. But those companies have to cover the cost of vacancies, maintenance and property management.

“What we do is offer pensions and endowments very pure exposure to home prices,” Sponholtz said.

Here’s how it works: Buyers have to qualify for a mortgage and be able to make a down payment of at least 10% on their own.

In a typical deal, Unison will match that 10% down payment, but the company will do smaller and larger deals. For example, it might match a 12.5% down payment, or put up as little as 5% if the buyer can put up more. Unison gets that money back, plus gains or losses, when the home is resold.

If homeowners haven’t sold or don’t want to sell after 30 years, they’re obligated to get an appraisal of the house’s value and cash Unison out, which could require taking out a home equity loan.

After the deal closes, the buyer takes possession of the house and is responsible for monthly mortgage payments, taxes, insurance and maintenance.

Unison’s deals are structured as an option — that is, in exchange for help with the down payment, the company is buying the right to acquire a set percentage of the home at a later date.