What is Equity Share and How Can you Get It?

Equity Sharing is a unique arrangement between an investor who has cash to contribute, and a buyer who has good income and at least average credit, but doesn’t have a down payment. The investor can provide the cash for a down payment or supplemental monthly payments, depending on how the buyer qualifies. The buyer covers the closing costs and all the other normal costs of owning a home, such as the mortgage payment, property taxes, insurance and upkeep. In 3-7 years the homeowner buys out the investor and they each take a share of the appreciation.

How does Equity Share Work?

Lets say the Buyer has no down payment or needs additional down payment to make their monthly payment affordable. Typically applies to first-time buyers, divorced buyers, relocating buyers, credit-challenged buyers, move-up buyers.

Equity Share Program contributes a 10-20% down payment or supplements up to 20% of the total monthly payment. Buyer qualifies for a more affordable loan program and can buy more home or a better neighborhood, or just have lower payments for the same purchase price.

What Does a Wholesale Loan Officer Do?

They can pre-qualify first time home buyers to purchase their first home through the Equity Share program. Why use a Mortgage Broker rather then a Mortgage Banker or a Banking Institution? A Wholesale Mortgage Broker has more choices of where to find money, they have access to more Lenders and they can get you a (usually) loan much easier if your credit is challenged by completing a "state" loan application. This is an application that can help the self-employed and other challenged credit applications.

Different states have different requirements for Loan Officers or Loan Agents. Check with your state's Real Estate Commission to find out more.

Article written by Cassandra Ingraham, Home Loan Specialist for http://www.taxeswilltravel.com