Re: Home Equity/Mortgage Loan Denial-Need Resolution
From: Diana Carroll (dianaecarrollgmail.com)
Date: Thu, 13 Jun 2013 08:26:06 -0700 (PDT)
Yeah we've learned over the years to not emphasize the word "cohousing"
when working with banks.  We just call it a condo and be done with it.
 Some banks have still balked at "cohousing"...we move on to another bank.

One bank told us that FNMA (which underwrites many mortgages) doesn't do
cohousing loans, and that;s why they (the bank) wouldn't do it.  We tried
to get some confirmation on that from FNMA but without success.  We have
had an easiest time getting mortgages from banks that do "portfolio" loans
(meaning they hold the mortgage themselves, rather than reselling it to
FNMA or other secondary mortgage market buyer.)

Diana


On Thu, Jun 13, 2013 at 8:26 AM, Ann Zabaldo <zabaldo [at] earthlink.net> wrote:

>
> Bill --
>
> Following on Sharon's comment ...
>
> How is Daybreak organized?  Is it a condominium?  That's what you're
> financing.  I'm sure in your organizing documents a.k.a. "condo docs" there
> is a statement about the project which clearly states the development is a
> "condominium" -- that's what the financial institution needs to see.
>
> When dealing w/ the world "out there" cohousing is just a condo or
> Homeowners Association or whatever.  It's just mainstream housing w/ a big
> community building.
>
> How did the other home owners get their financing?
>
> Best --
>
> Ann Zabaldo
> Takoma Village Cohousing
> Washington, DC
> Principal, Cohousing Collaborative, LLC
> Falls Church VA
> 703-688-2646
>
> On Jun 12, 2013, at 10:33 AM, Bill Cunninghame wrote:
>
> >
> > Hello,
> >
> > I searched through the cohousing-L archives but didn't find what I was
> > looking for (possibly due to my search criteria!).  I recently applied
> for
> > a home equity loan at my local credit union.  Though I am a well
> qualified
> > borrower, great credit, etc, they denied the application stating
> "Cohousing
> > Communities are not a collateral we are able to work with..." What's up
> > with that?  I'm formulating a letter to the credit union CEO, not to
> > complain (though I want to!) but to invite him and his lending management
> > to a private open house so we can educate them about cohousing. The
> > ultimate goal is for them to reconsider my application but if that
> doesn't
> > work it could lay the ground work for the next cohousing applicant. Have
> > you tried this approach or something similar?  What worked to convince
> your
> > lender to approve a loan against a cohousing home?  What didn't work?
>  Your
> > suggestions are most welcome.
> >
> > Bill Cunninghame
> > Daybreak Cohousing
> > Portland, OR
> > _________________________________________________________________
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> > http://www.cohousing.org/cohousing-L/
> >
> >
>
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