Cohousing-L Mailing List: conforming mortgage question

[Kristen Simmons (simmonskristen]

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