Advice on refinancing a small co-op building

Hi, I’m on the board of a 6-unit co-op. We have an existing loan with a balloon payment due early next year (this awful loan was made long before I got there). The co-op plans to refinance this loan, roll the closing costs into the mortgage, and perhaps also look into a line of credit for any unexpected repairs since our reserves are modest. I’m having trouble finding a bank that will refinance. One said we are not showing a profit so they would not give us a loan. I thought I was looking for a mortgage not a small business loan. Anyone out there have any experience with this? I could surely use some advice. Thank you! K C

kcgreatjones

in About Brooklyn 10 years and 1 month ago

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kcgreatjones | 10 years and 1 month ago

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I heard about them, thanks!

DeLepp | 10 years and 1 month ago

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National Cooperative Bank. They have a NYC office in midtown.

kcgreatjones | 10 years and 1 month ago

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thanks!

slopefarm | 10 years and 1 month ago

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Agreed. Adam Dahill. Good guy, knows what he is doing, and lots of people have found him through recommendations here and then posted that they were happy with his work for them.

daveinbedstuy | 10 years and 1 month ago

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Adam Dahill

kcgreatjones | 10 years and 1 month ago

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Thanks so much for your thoughts SlopeFarm! And thoughts on finding a good mortgage broker for this kind of thing?

slopefarm | 10 years and 1 month ago

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Before buying our house, we were in a 4-unit self-managed brownstone coop, and we refi’d an underlying mortgage that had a balloon. Balloons are common for small coop underlying mortgages. Keeps current monthlies low by kicking can down the road. But a balloon that is imminent can affect resale. With rates low and property values up, this should be a good time to refi and get rid of the balloon without raising monthlies significantly. I would take out enough cash from the refi to replenish the reserve. If I were a coop member, I’d be leery of a HELOC, which would let an officer raise my monthlies by writing a check. Also, try using a mortgage broker. I would think most banks understand what a coop underlying mortgage is and won’t expect you to turn a profit.