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shared equity mortgage

0.02 sec.

shared equity mortgage

A mortgage loan in which the lender pays a portion of the equity for the borrower and in return receives a portion of the increase in value of the property when it is sold.It is most commonly seen today in use with public programs that assist first-time home buyers;the practice is intended to discourage flipping in a rapidly rising real estate market.The longer the homeowner keeps the property,the lower the percentage of equity that must be shared with the lender.

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