### What is a cooperative mortgage primarily associated with? - [x] Cooperative residential projects - [ ] Single-family homes - [ ] Commercial real estate - [ ] Luxury properties > **Explanation:** Cooperative mortgages are specifically related to cooperative residential projects where a company holds the title to the property units and sells them as shares to buyers. Buyers receive the right to use the units as they see fit. ### How does a cooperative residential project typically function? - [x] A company holds the title and sells units as shares - [ ] Individual owners hold the title to their specific units - [ ] The government holds the title for the units - [ ] Units are rented from a single landlord > **Explanation:** In a cooperative residential project, a corporation holds the title of the property units and sells these units as shares to individual buyers. The buyers then have the right to use the properties according to their needs. ### Why might cooperative mortgages be considered less risky by some lenders? - [x] Cooperative purchases are seen as somewhat safer risks - [ ] Lenders receive tax incentives for these loans - [ ] Borrowers are typically higher-income individuals - [x] Cooperative properties are frequently in high-demand urban areas > **Explanation:** Cooperative purchases might be considered safer risks because the involvement of a corporation in the ownership and maintenance could imply more organized management and stable community dynamics, making lenders more likely to grant loans. ### For whom are cooperative mortgages typically provided? - [x] Individual buyers and the holding corporation - [ ] Only for first-time homebuyers - [ ] Only for corporate investors - [ ] Only for flipping houses > **Explanation:** Cooperative mortgages can be provided to individual buyers purchasing shares in a cooperative residential project as well as to the holding corporation involved in such a project. ### How does ownership work in a cooperative residential project when a property unit is purchased? - [x] The property unit is bought as shares in the company - [ ] The property is transferred fully to the buyer's name - [ ] The buyer gets a long-term lease but not ownership - [ ] The buyer inherits the property unit > **Explanation:** In cooperative residential projects, buyers purchase shares in the company that holds the title to the property, and thus, gain the right to use the specific property unit. ### What role does the corporation play in a cooperative residential project? - [x] It holds the title and sells property units as shares - [ ] It acts as a property management service - [ ] It serves as the legal representative for individual buyers - [ ] It primarily handles the landscaping and maintenance > **Explanation:** The corporation in a cooperative residential project holds the title to the property units and sells them as shares to individual buyers, giving them rights to use the specific units. ### Which type of lenders are more inclined to offer cooperative mortgages? - [x] Lenders specializing in co-op loans - [ ] Only large national banks - [ ] Only private equity firms - [ ] Only government-backed lenders > **Explanation:** Some lenders specialize in providing loans for cooperative mortgages because they view this type of purchase as a relatively safer investment and are thus more willing to grant these loans. ### What do individual buyers receive when they purchase a unit in a cooperative residential project? - [x] Shares in the cooperative corporation - [ ] Full deed to the property unit - [ ] A long-term lease with option to buy - [ ] A time-limited license for property use > **Explanation:** When purchasing a unit in a cooperative residential project, buyers receive shares in the cooperative corporation, granting them the right to use the property. ### What is a distinctive feature of cooperative mortgages compared to other types of mortgages? - [x] They are tied to the ownership of shares in a corporation - [ ] They typically have higher interest rates than conventional loans - [ ] They are often backed by federal insurance programs - [ ] They are only available for commercial properties > **Explanation:** Cooperative mortgages are distinctive because they are tied to the purchasing of shares in a corporation that holds the title to property units, unlike conventional mortgages where the title of the specific property unit is transferred to the buyer. ### Can cooperative mortgages be used for commercial properties? - [ ] Yes, they are mainly used for commercial zones - [ ] Only for mixed-used properties - [x] No, they are mainly for cooperative residential projects - [ ] Only for office buildings > **Explanation:** Cooperative mortgages are primarily designed for cooperative residential projects rather than commercial properties, reflecting their core purpose of facilitating residential use through shared ownership structur