To help with the purchase, an investor contributes part of the down payment in exchange for a percentage of the property's future appreciation. What type of financing is this?
Correct Answer
D) Shared-equity financing
Shared-equity financing is correct because the facts match an arrangement in which another party provides funds in exchange for a share of the property's future appreciation or equity. That is the best description of the relationship, right, or legal concept tested here.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs available to eligible veterans, active-duty service members, and surviving spouses. It offers no down payment and no private mortgage insurance requirements.
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