Co-op Financing?
I live in a six-unit co-op, and we are looking to re-financing our current mortgage (up for maturation soon) in order to fund needed renovations. However, the big banks such as Chase and HSBC have turned us away saying that they do not do co-op financing anymore (it’s a commercial loan). Has anyone recently gotten…
I live in a six-unit co-op, and we are looking to re-financing our current mortgage (up for maturation soon) in order to fund needed renovations. However, the big banks such as Chase and HSBC have turned us away saying that they do not do co-op financing anymore (it’s a commercial loan). Has anyone recently gotten successful financing for their co-op?
What is the name of the Coop?
We refinanced w National Coop Bank six or seven years ago. Other banks wouldn’t lend to a four-unit co-op. Rates may have been higher, but I don’t recall. (Didn’t much matter if others weren’t lending.)
What’s nice about the loan is that it is fully amortizing, no balloon at the end. If we have enough money in the kitty when the loan is up, we may not need to borrow again.
Sovereign (and others) will not refinance early — why should they — they have a guarnateed return and hope that interest rates will rise by the time the current mortgage expires!
We have a 4 unit co-op mortgage with Sovereign with a few years left to run. I have called numerous times about a refinancing and have yet to find anyone interested in helping. If anyone has a good contact at Sovereign, please share.
Small commercial coop loans are a problem. The only loans I ever found were from NCB National Cooperative Bank in DC and The Dime of Williamsburg. Expect to pay a premium and to have lousy terms.
Your current lender is the most motivated. Work out a deal with them or through them. Perhaps they will allow you to re-finance six or so months early with no penalty and you can lock in a historically low rate. Be sure to set aside a line of credit to tide you over vis-a-vis capital improvements until the next refinancing.
Sovereign does lots of coops but the best bet is your current lender.
I assume you’re talking about the mortgage for the entire building (not an individual unit)? Our 4-unit co-op’s building mortgage is held by Sovereign, and we deal with the branch on Montague St.
Try:
Greg Licciardello (Streamline Mortgage Corp)
718-232-0909
I know he offers both commercial and residential mortgages. Maybe he can help you out.