Line of Credit
Home equity loans (HEL) and lines of credit (HELOC) are loans in which the borrower uses the equity in the home as collateral. They are usually referred to as “second mortgages” because they are secured against the value of the property, just like regular mortgages. Second mortgages can be useful to help finance major expenses, such as home repairs, medical bills or college education.
If you decide to get a second mortgage, you should understand that you will not only have to fill out the paperwork required by your financial institution and meet their requirements, you will also have to fill out paperwork and gather materials for the co-op. The co-op must protect its interests and agree to the second mortgage as well.