Finance
In Washington real estate, a 'participation mortgage' is one where:
AMultiple buyers share ownership
BThe lender shares in the property's income or appreciation in exchange for a lower rate✓ Correct
CTwo lenders share the loan equally
DThe borrower participates in the lender's equity
Explanation
A participation mortgage allows the lender to receive a share of the property's income (income participation) or appreciation (equity participation) in exchange for providing a lower interest rate. It is sometimes used in commercial financing.
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