Best Shared Equity Loans
Common Questions
What is a shared equity loan?
How do shared equity loans work?
It’s important to note that there are different types of shared equity loans with varying terms and conditions. So, there isn’t a one-size-fits-all answer to this question. Some shared equity loans require you to pay back the principal of the loan regardless of whether the property increases in value or not. In this way, they are like a shared equity agreement or home equity investment. If you are looking for a home equity investment, the list of best HEIs above is a great place to start.
Where can you find shared equity loans?
This financing method is also used by family members who want to help with a down payment in exchange for a percentage of the profits when the house is sold.
In some cases, mortgage lenders provide both traditional mortgages and shared-equity loans. But this is extremely rare in the United States. Nevertheless, there are some non-profit agencies and municipal governments that use the shared equity model to provide down payment assistance loans. This can help borrowers avoid expensive fees, such as private mortgage insurance (PMI).