Shared Equity Mortgage (SEM)


Definition of "Shared equity mortgage (SEM)"

Valerie Howard real estate agent
Valerie Howard, Real Estate Agent Berkshire Hathaway Homeservices

Bank receives equity participation in the house as a result of lending the homeowner money. When the house is sold, the bank will receive its proportionate share of the proceeds. In such an arrangement, the bank sometimes pays the down payment for the house because of the homeowner's poor financial condition.

 

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