Banks Who Financed Cohousing
From: Chris ScottHanson (chriscohousingresources.com)
Date: Mon, 29 Jan 2007 10:33:03 -0800 (PST)
All over the country we find that it is the local banks who get the most excited about doing the construction lending for cohousing construction. As long as they can handle the size of the loan, which is typically 80% of the apparent cost of the completed project, or 70% of the value of the completed project. They are competing for our business. (Sure better than those early days in the late '80s and early '90s when they thought we were crazy, eh?)

I understand that Bank of America and Key Bank have both done construction financing for cohousing, too, but I have never worked with either.

The BIG issue is: Who does the bank think they loaning to? Does the borrow know what they are doing? Does the borrower and their management team have a track record? Is there enough equity/capital in the project? (At least 20% of apparent cost is necessary before you will receive major construction lending from a bank.)

As far as take out lending (the final mortgages that individual buyers must get to buy their homes) all the major mortgage lenders seem to be interested. Countrywide, probably the biggest in the country, has literally hundreds of cohousing mortgages. Many local banks have cohousing mortgages as well, and they do sell on the secondary market. Some cohousing projects have even been Fannie Mae and/or Freddie Mac approved.

Chris ScottHanson

Cohousing Resources LLC
Ecovillages, Cohousing & Sustainable Communities
Development and Consulting for a Sustainable Future
   based on the Natural Power of Community

(360) 321-7850 office
(206) 260-2800 eFAX
(617) 894-7661 cell


On Jan 26, 2007, at 8:11 AM, Zev Paiss wrote:

Greetings,

I am working with a builder in Florida who is needing the names of
banks who have successfully funded cohousing projects. Please respond
to this list so we can all have access to this list.

Thank you!

Zev

Zev Paiss
Abraham Paiss & Associates
Building Sustainable Communities Since 1992
1460 Quince Ave. #102
Boulder, CO 80304
303-413-8066
Zev [at] AbrahamPaiss.com
www.AbrahamPaiss.com
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