The program is a completely different transaction, and the concept behind it is to focus on buyers who are not currently able to obtain standard financing now for a variety of reasons but expect to do so in the next 2-3 years, or thereafter if necessary. The Seller Financing Agreement has a 40-year term.

The equitable title purchase program is offered through Omega Gold Development Group for the entire state of Maryland. The program is through their partners with a minimum 3.5% down (5% for second homes). It’s unprecedented and different from what we are all used to. All parties to the transaction need to be on board with the equity shared concept.

The buyer/customer themselves are not on the mortgage. The actual mortgage itself will be in a government entity’s name (for example, “Choctaw American Insurance, Inc.” or “Cedar Band HFA”). The government entity is not part of the government, but instead a separate entity that is approved by HUD to purchase these loans on behalf of the customer.

The buyer/customer will have a separate seller financing agreement with the applicable government entity and will have an equitable title to the property. In other words, the government entity will purchase the property for you, but the buyer/customer retains both the right to obtain legal title and the property’s equity. The mortgage is HUD-approved and is an FHA loan with a 40-year term, specifically for this program.

The Buyer may refinance the loan amount at any time. Should the Buyer payoff or refinance the Loan Amount before the end of 36 months (3 years).

The Buyer may pay off the entirety of the loan amount at any time using Seller Financing or beginning in the 25th month after Seller’s Closing using:

1. Buyer’s own funds or
2. Third-party financing 
3. Sell property with written permission from Seller

However, if they are so inclined, they can stay in the loan for the full 40-year term and obtain legal title upon its completion.