Mortgages for a co-op apt?
I’m investigating some new policies on the part of banks giving loans to people purchasing co-op apartments, and I’ve been told that many banks don’t give loans to people buying in to co-ops. Does anyone know of which major banks WILL give mortgages for a purchased of a co-op apt? So far, I know of…
I’m investigating some new policies on the part of banks giving loans to people purchasing co-op apartments, and I’ve been told that many banks don’t give loans to people buying in to co-ops. Does anyone know of which major banks WILL give mortgages for a purchased of a co-op apt? So far, I know of Citibank, Wells Fargo, Countrywide/Bank of America, and Chase/WaMu. Is there anyone else?
Try Vinnie Fingerbender he is kinder and is alot more honest than our Banks. If you don’t like hime try Bernie Madoff he is still more honest than most housing bankers.
Well, I just bought a studio in a co-op building in Prospect Heights the other week and easily secured a 5.25% mortgage from Wachovia…they haven’t been mentioned here thus far, but they’re definitely worth a shot if my experience is representative.
While Mopar is right—when I was first shopping for a mortgage for a coop purchase, I got a lot of curious responses from bankers who didn’t do much business in the NYC coop market—the situation has changed enough that even EXPERIENCED coop mortgage brokers are figuring out the new requirements which have changed and continue to do so. But, it sounds as though going through the seller’s bank is a good get around. Good luck!
Wow. I would talk to a mortgage broker with extensive experience with New York City coops.
Gotcha, yeah it’s tough right now on both sides. Our first mortgage broker actually advised me to walk away from the purchase b/c of the difficulty getting a mortgage for a co-op right now (i.e. we’d have the same problem selling as you and our seller had – no one can get a mortgage so we might not be able to sell it if we had to in a few years). Good luck, hopefully things will pick up again soon!
Actually, we’re selling our co-op, and what we’re finding is that banks now follow Fannie Mae or Freddie Mac guidelines when issuing mortgages — and I mean, they follow those guidelines to the letter. In those guidelines, it states that co-ops must have an insurance carrier with an “A” rating or higher, according to a major ratings agency. Our co-op’s insurance carrier is rated “A-,” so, as things currently stand, our buyer is unable to get a mortgage with, it appears, any major bank. You’re right jessenyc: it’s now all about reducing risk exposure for the banks. Also, the rules are different for condos or other types of properties. In this case, Fannie Mae only requires an “A-” rating or higher for properties other than co-ops.
It’s a little more complicated than that. I just bought into a 4 unit co-op and had a problem getting a loan. I have great credit and strong income compared to the mortgage amount, but couldn’t find a lender willing to lend into a 4 unit deal. I was told if it were 5 units or more, or if was a condo, it wouldn’t have been a problem. And this includes Chase, Citi, Wells, Astoria Financial, and National Financial. In the end, Citi was able to help us b/c the seller had a Citi mortgage. Citi was willing to lend on condition that our mortgage was wired directly back to Citibank to pay off the seller’s mortgage. It’s all about risk exposure to the bank. If you’re looking for a mortgage, I highly recommend Euguene Lee at Apple Mortgage – 917 796-1160).
HSBC
Well, the thing is you just named pretty much every major bank that’s still standing. Do you need more options? If you find a solid coop with strong financials then you shouldnt have a problem finding a lender to lend. sunny_hong@countrywide.com