It should be noted that in the Washington DC area, the price quoted for a co-operative unit is the full price, which includes the allocated portion of any corporate or blanket mortgage financing.

Since the price of a co-op unit includes the unpaid share of the blanket mortgage allocation, the current balance of the blanket/corporate mortgage is included in the total financing permitted by a lender.

A loan on a co-op unit is secured by an assignment of the borrower’s Ownership Documents to the lender as collateral security for the loan. The lender holds the original Ownership Documents until the loan is paid. The borrower’s indebtedness is recorded in the office of the Recorder of Deeds among the chattel or non-land records with the filing of a Uniform Commercial Code Financing Statement (UCC-1).

Some co-ops have minimum cash down payment requirements. Not every lender offers co-op financing. Among the lender that do, not all have a Recognition Agreement with each and every co-operative association. Check with the lender, the co-op or the co-ops management company.

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