Cohousing-L Mailing List: Banks Who Financed Cohousing

[Chris ScottHanson (chris]

All over the country we find that it is the local banks who get the  
most excited about doing the construction lending for cohousing  
construction.  As long as they can handle the size of the loan, which  
is typically 80% of the apparent cost of the completed project, or  
70% of the value of the completed project.  They are competing for  
our business.  (Sure better than those early days in the late '80s  
and early '90s when they thought we were crazy, eh?)

I understand that Bank of America and Key Bank have both done  
construction financing for cohousing, too, but I have never worked  
with either.

The BIG issue is: Who does the bank think they loaning to?  Does the  
borrow know what they are doing?  Does the borrower and their  
management team have a track record?  Is there enough equity/capital  
in the project?  (At least 20% of apparent cost is necessary before  
you will receive major construction lending from a bank.)

As far as take out lending (the final mortgages that individual  
buyers must get to buy their homes) all the major mortgage lenders  
seem to be interested.  Countrywide, probably the biggest in the  
country, has literally hundreds of cohousing mortgages.  Many local  
banks have cohousing mortgages as well, and they do sell on the  
secondary market.  Some cohousing projects have even been Fannie Mae  
and/or Freddie Mac approved.

Chris ScottHanson

Cohousing Resources LLC
Ecovillages, Cohousing & Sustainable Communities
Development and Consulting for a Sustainable Future
   based on the Natural Power of Community

(360) 321-7850 office
(206) 260-2800 eFAX
(617) 894-7661 cell


On Jan 26, 2007, at 8:11 AM, Zev Paiss wrote:

> Greetings,
>
> I am working with a builder in Florida who is needing the names of
> banks who have successfully funded cohousing projects. Please respond
> to this list so we can all have access to this list.
>
> Thank you!
>
> Zev
>
> Zev Paiss
> Abraham Paiss & Associates
> Building Sustainable Communities Since 1992
> 1460 Quince Ave. #102
> Boulder, CO 80304
> 303-413-8066
> Zev [at] AbrahamPaiss.com
> www.AbrahamPaiss.com
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