Cohousing-L Mailing List: Re: Cohousing-L Digest, Vol 79, Issue 1

[juniperjojo (juniperjojo]

Sharon,

Can you link to some supportive documentation for your statement that, 
"banks also won't lend on a building that has more than 10% of condo 
units leased."?

I've heard something similar before, but in extensive online research 
have found absolutely no evidence that this is true, and am starting to 
wonder if this is something of an urban legend/misconception.

The only regulations I can find are these:

"The government-backed mortgage-finance company (i.e., Fannie Mae) 
stopped guaranteeing mortgages in condo buildings where fewer than 70% 
of the units have been sold [...]. In addition, the company won't back 
loans for sales in buildings where 15% of current owners are delinquent 
on association fees or where more than 10% of units are owned by a 
single-entity."

We recently learned that the only limitation on number of leased units 
was that, in order to qualify for a mortgage, no more than 50% of all 
of the units in that development can be rented.

If you have any different information -- with citations/references, 
please -- please pass it on!

Jenny Cook
Great Oak Cohousing, Ann Arbor, MI
www.gocoho.org