Finance
What is 'equity sharing' in Idaho real estate financing?
ASharing property between siblings
BAn arrangement where an investor provides funds for a purchase in exchange for a share of ownership and appreciation of the property✓ Correct
CA mortgage where the lender receives equity as part of payments
DA tenancy in common arrangement
Explanation
Equity sharing allows an investor to contribute toward a purchase price in exchange for a percentage ownership interest and share of future appreciation. This helps buyers with down payment challenges while giving investors a real estate return.
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Key Terms to Know
Tenancy in Common
Co-ownership where two or more people hold undivided interests that need not be equal and pass to each owner's heirs — no right of survivorship.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Math Concepts
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