Home Equity Loans or Home Equity Line of Credit can be taken out against cooperatives, or coops. Unlike other forms of home ownership, cooperative owners own shares of a company that owns a coop building. With the shares a coop owner holds he is entitled to a unit in the coop building.

Although many banks do not lend on cooperatives, some banks specialize in Home Equity Loans and Home Equity Lines of Credit for coops located in some metropolitans where coops are common.

What is Home Equity?

Your home equity is the value of your coop less any existing mortgage.

What is a Home Equity Loan?

A Home Equity Loan is a fixed rate mortgage that uses your cooperative shares as collateral. It is an inexpensive and low cost method coop owners use to finance just about anything, such as for a new vehicle, or to consolidate debts.

What is a Home Equity Line of Credit?

A Home Equity Line of Credit (HELOC) is a type of home equity loan that has an adjustable interest rate. Unlike a fixed rate Home Equity Loan, a HELOC allows the coop owner to draw against the line of credit as often as needed, up to the set credit limit. Additionally, unlike fixed rate Home Equity Loan which requires monthly payments of principal and interest, HELOC only requires payment of the interests on the amount owed for the first 10 years.

How much can you get from your home equity?

Depending on your credit history and income, you can potentially borrow up to 100% of the available equity from your coop.

What are some of the benefits our coop home equity loan offers?

* No appraisal fee...

* No mortgage tax...

* No title fees...

* No recording fee...

* No income verification with credit scores of 680 and higher...

* Available to coops, condos, and 1 to 4 family houses...

* Better than refinance - which has high closing costs...

* Better than refinance - no need to pay off your current low interest rate mortgage...

* Interest paid may be tax deductible...

* HELOC offers the option to pay only the interests, the entire balance, or any amount in between.

Call me to find out if a coop home equity loan is right for you.