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LSDefine

Simple English definitions for legal terms

Shared equity mortgage

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A quick definition of Shared equity mortgage:

Shared equity mortgage: A type of mortgage where the lender owns a part of the house, usually half. This helps people with lower incomes get a mortgage because the lender has more security. When the house is sold, the lender gets their loan back plus their share of the profits. Shared equity mortgages may have rules about who can buy the house and how much it can be sold for later on.

A more thorough explanation:

Shared equity mortgage is a type of mortgage where the lender keeps a portion, normally half, of the equity in the house. This means that when a house is sold, the lender will be paid all of the loan plus their portion of the profits.

Shared equity mortgages are designed to help lower income individuals receive mortgages because the lender has more security by owning part of the property. However, shared equities may come with other requirements like limiting who can purchase the home or limit the sale price later on because shared equity lenders are often trying to limit housing costs for low income individuals.

Let's say you want to buy a house for $200,000 but you only have $20,000 for a down payment. You could get a shared equity mortgage where the lender puts up the other $80,000 for the down payment. In return, the lender would own half of the equity in the house.

Now, let's say you sell the house for $300,000. The lender would get their original $80,000 back plus half of the $100,000 profit, which would be $50,000. You would get the other $170,000.

This type of mortgage can be helpful for people who don't have a lot of money for a down payment but still want to buy a house. It can also be helpful for lenders because they have more security by owning part of the property.

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Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
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