What is a loan covenant?
A covenant is a promise to conform to specific guidelines as part of a loan agreement. Covenants help a lender monitor and control the loan. Return to Top What is a low-sold cooperative? A low-sold cooperative is a cooperative in which the sponsor (usually the original developer) still retains a majority of the cooperative interests (apartments). Return to Top What is a share loan? Depending on where you live, you may know a share loan as a co-op mortgage, co-op apartment loan, or end-unit financing. A share loan is similar to a home mortgage. The difference is the collateral. The collateral for a single-family or condominium mortgage is the fee simple real estate. In a housing cooperative, the collateral is the cooperative “share” interest (certificate of membership or corporate shares). This cooperative interest gives you an exclusive right to occupy a particular dwelling unit in perpetuity (occupancy agreement or proprietary lease). Return to Top What is an underlying mortgage? An u
