Cohousing-L Mailing List: Bank loan

[Rowena Conkling (rowenac]

Willie says - asking 30% deposit up front would forclose a lot of people and
particularly affordability.

That is what we asked for!  A number of people couldn't come up with
anything like that amount, and our affordability people only have to put up
a token amount.  We negotiate "exemptions" with households who can't come up
with the cash - it means they have to open themselves (or at least their
finances) up to our Financial Committee.  The balance is being made up from
loans to the group from other members at 9%.  Actually, it's amazing how
many people are able to come up with the deposit over a period of six to
twelve months.

We are making progress with our affordability component from a variety of
sources.  We don't count "first-time homebuyers" units as affordable - all
those people need really is an exemption from the full deposit requirement
until the unit is built and they can get their mortgage.  

So far we have the money for the land and development costs and promises
(solid) for much of the 25% or so equity we will need to get a construction
loan.

RowenaC [at] worldnet.att.net
Cambridge Cohousing