Finance
An Oregon homebuyer uses a shared equity mortgage (SEM). In this arrangement:
ATwo buyers purchase the home together, each holding 50% equity
BAn investor or government entity provides part of the down payment in exchange for a share of the future appreciation✓ Correct
CThe lender and buyer share the mortgage payments equally
DThe buyer and the homebuilder share the title until the mortgage is paid
Explanation
A shared equity mortgage involves a third party (investor, government program, or housing organization) providing part of the purchase funds in exchange for a share of the home's equity and future appreciation. The buyer gets into homeownership with a smaller down payment; the equity partner shares in the eventual sale.
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