What is the collateral of a community association loan?
Assessments collected from members and any reserve funds of the association serve as collateral for a community association loan. This includes members’ regular and special assessments as well as future income. No real estate is taken as collateral given that community associations are structured as fee-simple real estate whereby each unit is owned outright by the purchasor. Return to Top What is the share loan application process? Apply for a share loan is similar to applying for a single-family mortgage. You complete a loan application that provides the lender with information on you, including your job history, salary, checking and savings accounts. In addition, the lender evaluates the financial condition of the housing cooperative. As part of the application process, the lender is required by law to provide you with an estimate of closing costs within three business days. This is called a good-faith estimate. Lenders are also required to give you the government publication “A Home
