Re: Affordable (Co)housing
From: Diana Carroll (
Date: Tue, 20 Apr 2021 04:43:59 -0700 (PDT)
“ How do they build equity? If they stay for many years do they eventually
own the unit?”

Yes. It’s regular ownership. They have a regular mortgage from a regular
bank. Every dollar they pay towards the principal builds their equity.  If
they get a 30 year mortgage, they will own the house outright in 30 years.

The only thing different about their ownership from a standard unit is a
restriction on who they can sell to and how much the can sell for. (And the
former is negotiable—if they are unable to find a qualified buyer within a
certain time frame, they can sell to anyone.)

On Tue, Apr 20, 2021 at 7:36 AM Sharon Villines via Cohousing-L <
cohousing-l [at]> wrote:

> > On Apr 19, 2021, at 9:06 PM, Diana Carroll <dianaecarroll [at]>
> wrote:
> > They still get some cushion. They will get back all the equity they have
> > built up, meaning their downpayment and the amount they have paid down
> the
> > mortgage. If they started with 5% down (that's what our program requires)
> > and lived there for several years, maybe they could leave with 15% or
> more
> > back in cash.  That would help them have the 5% down for another similar
> > property, or plenty for first/last/security if they go back to renting.
> So
> > it isn't a total loss.
> It sounds like they do get something.
> How do they build equity? If they stay for many years do they eventually
> own the unit?
> Sharon
> ----
> Sharon Villines, Washington DC
> "The forest was shrinking, but the trees kept voting for the Axe, for the
> Axe was clever and convinced the Trees that because his handle was made of
> wood, he was one of them." -- Turkish proverb
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