Sweat Equity


  • The value of the work, including renovations, maintenance, or repairs, put into a house by its owner. This can be used in place of a full down payment (up to and including 50% of a down payment).

hard work, increased value, time and effort

Related Terms and Acronyms

  • Betterment Definition,
    • An improvement or replacement that increases a property's value.
  • Curb Appeal Definition,
    • The look of a house when viewed from the street.
  • Fixer-upper (fxr) Abbreviation,
    • A house that needs a lot of work and which sells for a discount.
  • Home Equity (HE) Acronym, Very Important,
    • The part of a home's value that the mortgage borrower owns outright; the difference between the fair market value of the home and the principal balances of all mortgage loans.
  • Trade Equity Definition,
    • A swap of property, such as real estate or a car, as part of a down payment for other real estate.
  • Valuable Consideration Definition,
    • The granting of some beneficial right, interest, profit, or suffering of some detrimental forbearance, loss or default by one party in exchange for the performance of another.
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