Shared equity mortage: a mortgage in which the lender gets a share of the equity of the home in exchange for providing a portion of the down payment. When the property is later sold, the lender is entitled to a portion of the proceeds.
from Nolo’s Plain-English Law Dictionary
Dan Immergluck suggests using "shared-equity homeownership" for programs that have resale restrictions for ongoing affordability; vs "shared-equity mortgage" for those that don't, ie 'investor' type.
See also: Shared appreciation mortgage (Wikipedia).
References [edit source]
- Downpayment Resource. "Shared Equity Programs Gain Popularity for Municipalities, Private Investors." 23 August 2017. https://downpaymentresource.com/shared-equity-program-models-gain-popularity-municipalities-private-investors/.
- Wikipedia. "Shared Appreciation Mortgage." https://en.wikipedia.org/wiki/Shared_appreciation_mortgage.