Alabama Real Estate Practice Exam 2025 – All-in-One Guide to Master Your Real Estate License!

Question: 1 / 400

In a shared equity loan, who does the borrower share equity with?

Just the bank

An investor, seller, or lender

A shared equity loan involves a borrower sharing equity with a third party, such as an investor, seller, or lender. Option A is incorrect because the borrower does not only share equity with the bank. Option C is incorrect because the borrower can also share equity with private investors, not just government agencies. Option D is incorrect because the whole purpose of a shared equity loan is for the borrower to share equity with another party, so it is not a solo investment.

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Only with government agencies

No one, it's a solo investment

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