The word “shared” by nature involves more than on person. As such with these home mortgage loans, two parties are involved, and two types of loans. Shared equity can either be a loan or an agreement.
One party makes most of the down payment, if not all of it, and any necessary costs. This party also makes the payments, and therefore gets some ownership of the house, and some taxes and interest paid for. This is the shared equity loan.
The shared equity agreement is more nitty gritty. The agreement is added to an existing home mortgage loan, and both parties come together to decide what the ownership percentage will be like, who pays what, how much and when, and it also lists a buying price if either party decides to buy the house.