Definition
Model sharing appreciation with lender or nonprofit, allowing affordable purchase with profit sharing on future sale.
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Shared equity makes affordable purchase possible by reducing down payment. Appreciation is shared with equity partner. Model provides lender with profit while reducing buyer costs. Shared equity requires clear agreements. Model is innovative affordability solution.
Pro Tip
Shared equity programs provide affordability; understand appreciation-sharing terms.
Example
Shared equity program reducing down payment with organization sharing 25% of appreciation on sale.