A housing cooperative, also known as a co-op, is formed when people join together to own or control the housing facilities in which they live. The main difference between a co-op and other forms of homeownership is that you will not directly own real estate in a co-op. Instead, people involved in a co-op have shares of membership in the housing cooperative. These shares also give you the right to live in a specific unit in the facility. Those looking to join a co-op will need to obtain a co-op loan to be able to buy shares into the organization. Obtaining a mortgage for a co-op can be difficult so here are some helpful hints when applying for a co-op loan:

1. Understand that, if you sell your shares in the co-op, you may not receive a profit as it can be difficult to find buyers for a co-op unit.
2. When looking for a co-op unit, ensure you look over all the items you would for any other property: location, areas in need of repair, price, etc.
3. Make certain you obtain the proper insurance to cover the co-op as typical homeowners’ insurance may not cover a co-op in the event of fire, damage or loss.

Bank of the Commonwealth Mortgage is pleased to offer co-op loans for those who are purchasing a co-op unit. We are one of the very few brokers in today's financial marketplace who offer co-op loans and are experienced in this area of financing which has been perfected over the past 35 years. Please contact us today regarding this type of specialized financing.