Banks that give mortgages on co-
..ops with less than 50% owner occupancy? I know someone trying to buy a [cheap] place (not new construction), but the owner-occupancy is like 48%. For some reason, she can’t find any banks for the mortgage (although she IS pre-approved for a more expensive place). I think this place is asking 350K and it’s in…
..ops with less than 50% owner occupancy?
I know someone trying to buy a [cheap] place (not new construction), but the owner-occupancy is like 48%. For some reason, she can’t find any banks for the mortgage (although she IS pre-approved for a more expensive place). I think this place is asking 350K and it’s in BK (Park Slopish). I said I’d try and help her via the internet, but not much happens googling this subject.
Anyone know of any banks that she should try?
Thanks. That makes sense… I’ll tell her.
Also make sure she takes a good look at the financials and has her lawyer or an accountant look at them too. You are at more risk when the sponsor holds most of the units if they go bankrupt. That’s why the banks don’t like lending in these buildings.
This is a common problem for some co-ops converted in the late 80s/early 90s. The market tanked, units didn’t sell and then as years went by, the sponsors were making so much on the rent they didn’t put the units back on the market when it improved, they just kept re-renting them and pocketing the money.
Each of the local banks (Chase, etc) used to keep a list of co-ops that were preapproved for mortgages even though they weren’t fully sold. Since the mortgage crisis and all the local banks are now national entities with no understanding of the NYC market anymore, it’s been much harder for people to get mortgages in these situations.
Your friend may want to try:
National Cooperative Bank: http://www.ncb.coop/
Astoria Federal Savings: http://www.astoriafederal.com/
Also if the building has an underlying mortgage on it, your friend might want to contact the bank that provided the building’s mortgage as they has already vetted the building in the past and are more familiar with its financials.