Cohousing-L Mailing List: Re: conforming mortgage question

[Diana Carroll (dianaecarroll]

Oh another point.  We also at some point close to move in stopped  
having new members join the llc.  Once there were no big development  
decisions to make nor mezzanine financing needed there was no benefit  
to it.  So recent buyers have not had as much trouble with mortgages  
at least as far as arm's length goes

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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