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Housing Cooperative Loan

Cooperative housing loans are a custom mortgage product with a 5 to 15-year term for limited-equity or low-income housing cooperatives.

Criteria

  • MAXIMUM LOAN-TO-VALUE: 80-100%
  • TERM OF LOAN: Up to 15 years
  • AMORITIZATION: 30 year maximum
  • INTEREST RATE: 6-9%
  • REPAYMENT: Monthly principal and interest with balloon at maturity or fully amortizing, where possible
  • POINTS: Up to 2 points
  • APPLICATION FEE: $250 ($150 for nonprofits)
  • FEES: Normal closing costs apply
  • ESCROW DISBURSEMENT: Required on all loans exceeding $5,000
  • SECURITY: First mortgage (valid first lien on property) preferred and / or combination of first or second position lien on property along with guarantees, cash collateral, Letters of Credit, first or second position lien on other property and so forth
  • OTHER: Technical assistance from cooperative housing trade association and / or CCLF is generally required

Eligibility

  • PROPERTY RESTRICTIONS: Project must be located in the six-county (Cook, DuPage, Kane, Lake, McHenry, Will) Chicago metropolitan area
  • BORROWER RESTRICTIONS: Must be a housing cooperative organization, nonprofit or limited liability corporation. Income of end-users must not exceed 120% of Area Median Income (AMI).

 

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