Financing for Cooperative: Co-op Share Loans – Greendayonline


What is a housing cooperative?

A housing co-op is a group of individuals who collectively manage or own the building(s) within which they reside. Instead of purchasing “real” property, you purchase stock or membership within a cooperative. The co-op corporation owns the land, the building as well as any common areas. As a member of a cooperative, you are entitled to live in a particular space within the building. The members are the democratically elected representatives of the cooperative corporation and choose an oversight board. The board is able to approve any potential member and is able to terminate membership as well as expel residents who are in violation of any provision of the agreement on occupancy.

The process of financing a co-op purchase is the same as buying any other type of property, except for the fact that some lenders do not provide co-op loans. The process of financing a co-op involves approval for both the borrower as well as the building. Therefore, lenders must review the assets of the building and also determine the eligibility of the lender. People who are considering purchasing a co-op or condo must carefully study the guidelines of the associations and boards, as well as examine the fees of one property to the next due to the wide range of what they include. Another option that people can use is loans with monthly payments. Learn how to get a loan with monthly payments on

What exactly is a share loan?

Much like a mortgage share loans provide the borrower with money to purchase shares of stock within the cooperative, as well as the right to use the unit.

What is the difference between a co-op and a condo? differ from owning a condo?

If you are a co-op owner it is not the case that you own the rooms that make up the unit. Instead, its shares in the management of the building(s). When you own a condominium you are the owner of the inside area of the rooms that make up your unit, whereas the condominium association holds the land, public spaces as well as the infrastructure within your building(s).

What criteria will be considered to judge my creditworthiness for an equity loan?

We will evaluate your creditworthiness by applying underwriting guidelines on all mortgages. The decisions are based on credit scores ratios, loan-to-value ratios, and debt-to-income ratios, among other variables.

If you choose to work with us, your benefits quickly increase:

  • Purchase Loans
  • Cash-Out Refinancing
  • Second Home Financing
  • Jumbo Loans
  • Low Closing Costs
  • Reverse Mortgages
  • Up to 90 Percent of Financing

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