Cohousing-L Mailing List: Re: conforming mortgage question

[Diana Carroll (dianaecarroll]

No none of our loans have been conforming.  We ran into the arm's  
length thing once or twice but more often the problem is related to  
number of sold/presold units.  They want to see at least 70% presold  
and 50% owner occupied plus you budget must meet various requirements.

You can right you p&s in a way less likely to trigger the arm's length  
clause by referring to deposit not equity.

Most of our mortgages came through our constuction lenders, especially  
the early ones

Sent from my iPhone

On Mar 1, 2010, at 9:45 AM, Kristen Simmons <simmonskristen [at] gmail.com>  
wrote:

> This one's for all the financial experts out there. Please be kind  
> if I get
> some of the terms wrong, I know just enough to ask the questions.
>
> My group, Stony Brook Cohousing in Boston, is doing some early  
> research on
> mortgages. A question has come up about conforming mortgages. These
> mortgages conform to certain standards, such as a limit on the total  
> loan
> amount, etc. Another standard is that the transaction must be arms  
> length.
> How have groups dealt with this?
>
> As I understand it, purchasers in new cohousing communities are  
> usually also
> members of the development entity. Since the purchaser is buying  
> from an
> entity that s/he is a member of, is the transaction still considered  
> arms
> length? Do people in cohousing have conforming mortgages?
>
> Thanks in advance,
> Kristen
>
> PS: We are looking for neighbors. Construction will begin December  
> 2010, and
> we will move in on December 2011. Join us in the fun.
> www.stonybrookcohousing.org
> http://twitter.com/CohousingBoston
> http://www.facebook.com/home.php?#!/pages/Stony-Brook-CoHousing/312771196582?ref=ts
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