Shared Equity Single Family Mortgages Can Preserve the Long Term Affordability of Homes
How have shared equity housing models created positive impacts on the supply of affordable housing?
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By Conrad Egan
- Shared equity single family mortgages can assist lower income home buyers and preserve the long term affordability of the homes. They can also assist challenged home owners to exit successfully.
- Shared equity multifamily mortgages can enable purchasers to move quickly to acquire multifamily properties. A good example is the Housing Partnership Equity Trust, which is a twelve member REIT sponsored by the National Housing Partnership.
- The shared equity concept can also be applied to principal reductions for “underwater” borrowers whereby the deferred portion of the principal can be recovered, in part, when values rise again thus aiding borrowers now and enabling investors to recover a portion of the reduction in the future, which will increase their motivation to provide principal reductions. Here is an interesting New York Times article on the subject – http://www.nytimes.com/2014/05/09/opinion/what-housing-recovery.html
Conrad Egan represents the Affordable Housing Institute.
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