A shared ownership mortgage is an excellent way to find more affordable property. If you can’t possibly afford the down payment and expenses of a full mortgage, you might be able to swing for just 25 to 50 percent of that property value. These fractional ownership schemes are more popular in the UK than in the United States, but they’re gaining momentum in the States.
The origins of shared ownership programs are similar to the origins of 0 down home loans: the wealthy. The concept was to enable expensive properties such as yachts to be shared among the wealthy who wouldn’t be using their property for very large portions of the year. Like with 0 down home loans, these programs spread as their convenience became apparent to all.
Shared ownership mortgages have become one of the more flexible mortgages available. But make certain you obtain advice from a broker savvy with such programs. You want to make the most of your money and increase your chances of building equity in your property.