Finance
In Texas real estate finance, a 'participation mortgage' involves:
AA borrower who makes partial payments
BA lender who receives a portion of the property's income or appreciation in addition to interest✓ Correct
CMultiple borrowers sharing one mortgage
DA government program for first-time buyers
Explanation
A participation mortgage (also called an equity participation mortgage) allows the lender to share in the property's income (income participation) or appreciation (appreciation participation) in exchange for a lower interest rate or other favorable terms. These are used in commercial lending.
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