Equity sharing

Companies in the United States include Unison Homeownership Investors, Landed, and OwnHome Mortgage & Finance.

[1] There are many uses of the term "Equity Sharing" in the UK, often applied to different forms of Low Cost Home Ownership schemes.

Some local authorities may also refer to resale price restrictions under planning documentation as being Equity Sharing arrangements.

[5] New Build HomeBuy is where purchasers buy at least 25% of a newly built home, and pay rent on the remainder.

[6] HomeBuy Direct was introduced in 2009, under which the government and a housing developer jointly fund an equity loan of 30% of the valuation, so that the purchaser only needs to pay a mortgage on 70% of the value.

[7] Social Homebuy allows tenants of participating Councils and housing associations to buy their rented home on shared ownership terms, with a proportion of the usual Right to Acquire discount.

Instead, third party investors provide the difference between the buyer's deposit and (typically) a 75% mortgage, in return for an equity stake in the property and a rent.

As a result, today an owner has stronger incentives to make relationship-specific investments (i.e., the hold-up problem is mitigated).