Mortgage Broker Company - Need A Special Mortgage? 5

What is a Co-Op loan?

A Co-Op loan is used when you purchase a condominium. A conominium is a place a person owns their own apartment in a building with many apartments. You share areas such as parking lots, elevators, recreational areas, etc.

This type of mortgage can be a problem, most require a building to be less than four stories high and have more than 1/2 occupied by the actual owners.

Some owners work together to form a cooperative corporation (co-op) which they then have legal ownership of the building.

Many co-op loans will get a 10 year interest only mortgage with the balance due at the end of the loan term. Then refinance the loan balance - remember the balloon loan?

You can become part of the co-op and get a co-op loan which allows you to buy shares for the co-op.

Sharon