Most cooperatives are financed by a mortgage on the entire cooperative.

Question

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Most cooperatives are financed by a mortgage on the entire cooperative. This means that the loan is secured by the entire building, and not just one individual unit. This is because the cooperative form of ownership typically does not allow for individual unit owners to take out their own mortgages. Instead, the cooperative corporation takes out a mortgage for the entire building and each unit owner pays their portion of the mortgage through their monthly maintenance fees.

Most Cooperatives Are Financed by a Mortgage on the Entire