Washburn
Law
Journal
zones
to
allow
multifamily
housing
in
cities
like
Minneapolis
is an
example
of
this
relatively
new
approach
to
encourage
multiple
units
of
housing
on
parcels that
had been
zoned
as
single
family.
1 7
Building
codes
have
also
limited
how
buildings
can
be
used
by
owners
and
tenants
alike.
Finally,
like
ownership,
mortgage
financing
can
be
sliced
and
diced
in
many
ways.
Both
the government
and
private
sector
have
reduced
down
payment
amounts
to
make
loans
more
accessible
to
borrowers
and
thereby
expand
homeownership
opportunities.
18
This
strategy
has
reduced
the
size
of
standard
down
payments
significantly
over
time.
19
Lenders
have
also
reduced,
and
even
eliminated
monthly
payments,
more
often
for
existing
homeowners
than
prospective
homeowners.
Reverse
mortgages,
for
in-
stance,
allow
homeowners
and
cooperative
owners
to
borrow
and
not
make
monthly
payments.
20
Even new
homeowners
can
sometimes
get
in
on
the
action
with interest-only
loans
2
1
or
adjustable-rate
mortgages.
22
Such
loans
allowed
homeowners
in
the
early 2000s
to
have
negative
amortizing
loans
in
which the
amount
owed
increases
over
some
period
of
time.
23
A
home-
owner
could
also
give up
some
of
the
upsides
of
owning
a
home with
a
shared
appreciation
mortgage,
in
which
the
lender
charges
a
lower
interest
rate
in
exchange
for
some
of
the
upsides
on
the
sale
of
the
home.
24
Or,
the
17.
Id.
18.
See Jill Chodorov
Kaminsky,
Zero-Down
Home
Loans
Are
Back.
Be
Very
Leery.,
WASH.
POST
(Feb.
19,
2018),
https://www.washingtonpost.com/news/where-we-live/wp/2018/02/12/zero-down-ho
me-loans-are-back-be-very-leery/
[https://perma.cc/YZ9M-ETJ8];
USDA
Offers
No
Down
Payment
Options
for
Rural
Home
Buyers,
USDA
(Oct.
15,
2014),
https://www.rd.usda.gov/newsroom/news-rel
ease/usda-offers-no-down-payment-options-rural-new-york-home-buyers
[https://perma.cc/3HMC-YS
Xv].
19.
See Kaminsky,
supra
note
18.
20.
Reverse
Mortgages,
FTC
CONSUMER
INFO.,
https://www.consumer.ftc.gov/articles/0192-rev
erse-mortgages
[https://perma.cc/T55P-8LKH]
(last
visited
Feb.
25, 2022).
21.
Stephan
F.
Thode
&
Richard
Kishe,
The
Zero-Coupon/Interest-Only
Fixed-Rate
Mortgage:
An
Alternative
for
Funding
Low-
to-Moderate
Income
Households,
9
J.
REAL
EST.
RSCH.
263,
265-66
(1994);
Amy
Fontinelle,
How
Do
Interest-Only
Mortgages
Work?,
INVESTOPEDIA
(July
3,
2021),
https://www.investopedia.com/artices/managing-wealth/042516/how-interestonly-mortgages-
work.asp
[https://perma.cc/KLS9-QTY2].
22. Jo
Carrillo,
Dangerous
Loans:
Consumer Challenges
to
Adjustable
Rate
Mortgages,
5
BERKELEY
BUs.
L.
J.
1,
28-29
(2008); Dan Levine,
Wells
Fargo
to
Settle
Lawsuit
over
Pick-a-Payment
Loans,
REUTERS
(Dec.
14,
2010, 6:54
PM),
https://www.reuters.com/article/wellsfargo-settlement/wel
Is-fargo-to-settle-lawsuit-over-pick-a-payment-loans-idINN
1427719820101215
[https://perma.cc/SBU7-LUVF].
23.
Christopher
J.
Mayer,
Karen
M.
Pence
&
Shane M.
Sherlund,
The
Rise
in
Mortgage
Defaults
13-14
(Fed.
Rsrv. Bd.,
Working
Paper
No. 2008-59,
2008),
https://www.federalreserve.gov/pubs/feds/
2008/200859/200859pap.pdf
[https://perma.cc/7XSW-KJ36].
24.
Ernira
Mehmetaj
&
David
Reiss,
The
Promise
and
Perils
of
Shared
Equity
Financing,
35
PROB.
&
PROP.
46,47
(2021); Julia
Kagan,
Shared
Appreciation
Mortgage
(SAM),
INVESTOPEDIA
(Feb.
13,
2022),
https://www.investopedia.com/terms/s/shared-appreciation-mortgage.asp
[https://perma.cc/
B5FC-UTZQ].
476
[Vol.
61