This topic contains information on loan eligibility for co-op share loans, including:
Co-op share loans finance the purchase or refinancing of the borrower’s ownership interest in a co-op housing corporation and accompanying occupancy rights in a residential unit in a co-op project owned by the co-op housing corporation. The property that secures Fannie Mae’s first lien is the borrower’s ownership interest in a co-op housing corporation that is represented by stock or shares in the co-op housing corporation (or by a membership certificate or other contractual agreement evidencing ownership) and an assignment of the borrower’s rights under a proprietary lease or occupancy agreement with the co-op housing corporation.
Co-op share loans may be delivered as whole loans in standard commitments. Co-op share loans pooled in MBS may be eligible for delivery as long as they meet the requirements in