does any one know of lenders in PA that provide co-op / share mortgages? have been looking for a bit and having a hard time finding any... any help is of course greatly appreciated!

matt

My first impression is that you're going to have a very hard time finding
lenders doing "Shared Appreciation Mortgages" in today's market.

Mortgage companies get cash for next month's settlements by selling investors the right to 30 years of mortgage payments from mortgages made at this month's settlemets. Because lenders don't write mortgages they can't sell, SAMs may not be so hot right now.

The SAM is normally used to bring down the interest rates a buyer pays-
and with rates near all time lows, there's little to no incentive for major lenders to offer a rate reduction plan- I'd expect that the last thing they want to do is to re-sell a loan that's paying lower than average interest rates, in an already low market.

The other idea is that a SAM gives the banks an equity position,
which IS good if the mortgage company wants to invest in real estate,
but I get the feeling that people prefer to invest in bundled Real Estate Investment Trust- REIT - basically a mutual fund made up of real estate holdings rather than stocks and calls and spydrs. Basically, rates are low enought that money is cheap, investment orientated banks aren't going to want to use your money to buy real estate, they'll go in with their own money and buy into a diversified REIT rather than an individual home.
Because the value of a SAM is based entirely on your repayment of the loan, it's riskier than the same money invested in a REIT where the risk is shared amoung lots and lots of individual mortgages.

Hal

With the real estate market hetaing up like it is, a shared mortgage for several families buying a duplex, or a split up twin sounds like a good idea ...

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