When you get a shared equity mortgage a private seller or investor will make a down payment on
home and share in
equity. The investor can pull their investment if you return
down payment plus all accrued equity once
property is sold. One alternative financing option A share equity mortgage arrangement is an alternative financing option for buyers who might be able to make
monthly payments on a mortgage but cannot come up with
down payment.
This is not an agreement that one should enter lightly because
investor might not have
same long term goals as
homeowner. The private investor might want to pull his or her equity out of
home after a few years, while
resident wants to keep
property for 10, 15 or 30 years.
Use a lawyer who can help you structure your shared equity mortgage agreement to protect all parties The best way to protect yourself and your investment is to use an attorney that specializes in these types of transactions. You should be able to get a recommendation from any real estate attorney in your town.
Your attorney will structure
arrangement so that both parties can receive whatever cash or equity they need in a reasonable amount of time either through a buyout or by selling
property.