Financing a Co-Op

Most financial institutions do not lend on Co-ops and those that do require a larger downpayment even if you are a first time homebuyer.

Minimum downpayment
Unregistered lease - 35% of maximum $100,000.00 purchase price.
Registered lease - 35% of maximum $150,000.00 purchase price.

Maximum G.D.S. - 30% (this refers to % of gross family income required for payments of principal and interest.
Maximum T.D.S. - 40% (this refers to % of gross family income required for servicing debts.

Rates
Unregistered lease - posted rates plus 2%
Registered lease - posted rates plus 1%

Must be owner occupied.

Lender will require written consent from the co-op board prior to issuing a commitment letter.

Lender will also require an assignment of lease and hypothecation of shares.

You must use the lender's lawyer.

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