Cooperative Mortgage
Definition
- A co-op mortgage is a loan that enables the borrower to buy into -- or shares of -- a cooperative project. This type of mortgage specifically handles multiple ownership scenario in which a corporation owns property (usually an apartment building or condominium complex) and the occupants own shares in the corporation equal to their portion of the building.
Synonyms
group mortgage, co-op mortgage, loan
Related Terms and Acronyms
- Commercial Mortgage — Definition, Very Important,
- A mortgage for commercial property.
- Condominium (condo) — Abbreviation,
- A condominium is an apartment building or townhouse complex where the structure and living areas are managed and owned, rather than rented, by the building's tenants.
- A structure of two or more housing units. The interior space of the units are individually owned. The balance of the property (land, building and other amenities) is owned in common by the owners of the individual units.
- Cooperative — Definition,
- A residential project owned by a cooperative corporation. Residents own shares in the cooperation, which in turn gives them the right to live in the project.
- Mortgage (mtg) — Abbreviation, Important,
- A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
- Shared-Appreciation Mortgage (SAM) — Acronym,
- A mortgage loan where the lender or a third-party backer agrees to offer a highly reduced mortgage rate to the borrower in exchange of sharing profits when the property is sold.
- A home loan in which the lender offers a below-market interest rate in exchange for sharing in the profit when the home is sold. Usually done only with private funds/lenders.
