Co-op & Condo Financing
Co-op and condo financing
Co-ops and condos are financed very differently. A co-op loan is a share loan that also has to satisfy the board. A condo loan depends on whether the building meets agency guidelines.
Key facts
- Available in
- New York, New Jersey, Florida, Pennsylvania
- Co-op rules
- Board sets max financing, debt-to-income and post-closing liquidity
- Co-op tax
- No NYC mortgage recording tax on share loans
- Condo review
- Warrantable buildings get agency pricing
- Non-warrantable
- Portfolio and non-QM options available
Who it's for
- Co-op buyers in Brighton Beach, Bay Ridge, Flatbush and Midwood
- Condo buyers in new developments
- Buyers of non-warrantable condos
- Sellers whose buyers need a fast approval
New York City has thousands of co-op buildings, and each board has its own rules. Many cap financing at 75-80% of the price, and many require one to two years of payments in liquid assets after closing. We confirm the building's rules and the lender's approval of the building before your offer.
For condos, the key question is warrantability: owner-occupancy ratios, commercial space, litigation and single-investor concentration. New developments often have not yet met agency thresholds, so we line up portfolio lenders that will lend in the building.
In Florida, condo buildings must now complete milestone structural inspections and structural integrity reserve studies. Lenders review those results, and buildings with deferred repairs or underfunded reserves can be harder to finance. We check the association's documents before you commit.
Popular in Brooklyn
Sheepshead Bay, Brighton Beach, Coney Island, Midwood, Bay Ridge, Bensonhurst & Bath Beach, Flatbush & Ditmas Park, Kensington & Windsor Terrace
Questions
Why do co-op boards ask for so much paperwork?
The board is approving you as a shareholder in the corporation that owns the building. They review income, assets, debts and references to protect the other owners.
Do I pay mortgage recording tax on a co-op?
No. Co-op share loans are not recorded mortgages, so NYC mortgage recording tax does not apply.
What is a non-warrantable condo?
A building that does not meet Fannie Mae or Freddie Mac guidelines. You can still finance it, typically through a portfolio or non-QM lender.
Can I finance an older Florida condo?
Often, yes. The lender will review the building's milestone inspection and reserve study. Buildings with large unfunded repairs or pending special assessments may need a portfolio lender.
Questions about Co-op & Condo Financing?
A licensed loan officer will walk you through the numbers, usually the same day.