Refinancing My Co-Op
I’m having a hard time refinancing my coop mortgage due to less than 50% shareholder residents living in the building. To be clear, we are about 55% shareholders but lots of shareholders rent out their units and don’t live in the building. Any thoughts on where I can go for a 15 year fixed mortgage?
I’m having a hard time refinancing my coop mortgage due to less than 50% shareholder residents living in the building. To be clear, we are about 55% shareholders but lots of shareholders rent out their units and don’t live in the building. Any thoughts on where I can go for a 15 year fixed mortgage?
When you talk about the percentage owner occupied, are you talking about shares or number of apartments?
I ask because our 4 unit coop (1 apartment with 33% shares, the other 3 with 22% each) is in the process of revising our bylaws. Depending on the combination, if 2 apartments sublet that’s 44% or 55% of the shares. Obviously it’s a headache if half the apartments in a self-managed building aren’t owner-occupied, but we’re more concerned about the financial implications listed in prior postings.
Thanks!
We do need a sublet policy, but we have not yet found a way to get this passed. I have tried lots of banks and mortgage brokers — will keep trying. Seems that restrictions have tightened again in the last few months. I need a bank or lender that does not sell the mortgage and this I am having a hard time finding!
Thanks
Most banks want 80% or more owner occupied…Good luck and get the Board to make some changes!
I have heard mixed things about whether banks care about the 50% owner-occupancy for coops. There may be some banks that do not mind, particularly if the financials for the building are otherwise good. Why don’t you call a couple of mortgage brokers and explain the situation and see if they know of any banks?
You really have to get the Board to limit subletting. Not only is it difficult for you to refinance, it is difficult for any new buyer to get a mortgage or when you may have to refinance an underlying mortgage.