Cohousing-L Mailing List: RE: Help!

[Rob Sandelin (robsan]

We were advised by our attorney and also by the realtor and title 
company who reviewed our condominium declarations that if we placed 
limitations on equity on resale of units it would disqualify us from 
FMNA approval.

FMNA approval is important if you are seeking commercial bank 
mortgages, and in our case that was key to us continuing our 
development.  The way the mortgage stuff works is that banks sell 
batches of loans to FMNA to free up capital to loan again.  Unique 
loans which can't be bundled, or are not sellable to FMNA must be held 
by the bank.  Since the S&L problems there are a bunch of new 
regulations which limit the amount of individual loans banks can carry.

I understand there are some special loan programs for "low-income" 
housing which allow banks to accept equity limitations. My advise, if 
you are looking for commercial bank mortgages, to ask your bank about 
what they will or will not accept in the way of limited equity.
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From:  <netmail!SMITHMCC [at] delphi.com>
To: Rob Sandelin
Subject: Help!
Date: Tuesday, December 28, 1993 10:28AM

Tucson Cohousing is having a discussion concerning Limited Equity or 
market value in the resale of property or improvements.

1. Can anyone out there give some thoughts or feeling regarding this topic.

2. Did anyone compromise and what did you do.

Any and all input is appreciated.


Gregg (smithmcc [at] delphi.com)