Finance
What is 'equity sharing' in Hawaii and how does it help buyers afford high-priced properties?
AA. A government program giving buyers equity in Hawaii Housing Finance properties
BB. An arrangement where an investor (silent co-investor) provides down payment assistance in exchange for a share of the property's appreciation when it sells; helps buyers who have income but lack down payment✓ Correct
CC. A method of sharing equity returns between two properties in the same portfolio
DD. A loan program where the bank takes equity in the property instead of charging interest
Explanation
Equity sharing arrangements involve an investor providing funds for a down payment or purchase, in exchange for a percentage of future appreciation. The owner-occupant lives in the property and makes mortgage payments. When the property sells, the investor receives their equity share. In Hawaii's high-cost market, equity sharing helps buyers who qualify for mortgage payments but lack substantial down payment savings.
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