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With a private equity loan, does the lender have a stake in the home?
With a private equity loan, does the lender have a stake in the home?
Polly Gilbert avatar
Written by Polly Gilbert
Updated over a week ago

Yes they do. In return for providing additional capital to the buyer, the lender takes a stake in the buyer's home. This means the lender will share in any future profit or loss made on the home. So, if the property increases in value by 10%, the lender's share in the property will increase alongside this.

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