Best Shared Equity Companies to Finance a Second Property | April 2021
Have you considered buying a second property and decided you can't afford one yet? A shared equity agreement can be a great way to finance the down payment and closing costs of a second home.
A second home can provide a source of income and a vacation getaway for the family. However, if you need a second mortgage to pay for it, get ready for stricter underwriting requirements and a larger minimum down payment. Tapping into your home equity can help.
The problem with traditional home equity loans and HELOCs is they come with interest, monthly payments, and stringent eligibility requirements. So, they are not a great option for homeowners who don't have perfect credit or prefer to avoid additional debt.
Shared equity agreements can be a smart alternative for many homeowners because they offer cash in exchange for a share in the future value of their homes. This means no debt, no interest, and no monthly payments to worry about.
Here is SuperMoney's list of the best shared equity investors for financing a second property.