COOP Articles - A Great Way To Find out Coop info
COOP FINANCING !
WHAT is a CO-OP unit? A co-op financing mortgage often refers specifically to
a co-operative form of ownership whereby a building is owned by a corporation (the co-op). The
co-op financing then sets up a contract that leases the individual apartment back to the
individual. As a result, the ownership and financing of a co-op is more complicated than it is for
any other mortgage type of housing. The potential buyer of a co-op apartment is buying
into the corporation and therefore becoming a shareholder in that corporation. The typical
co-op financing transaction involves a buyer, seller, co-op
board and the management company.
WHAT meaning known as a SHARE loan? When buying a co-op, the financing loan
structure seems the same and is often referred to as a mortgage but, in fact, the loan is
typically a share loan. If a homeowner buys either a condo or single family
home, a loan is often provided to help the person buy the property. That loan
is known as a mortgage. The loan is secured by the shares is therefore known as a
share loan. Because the buyer is buying shares of the corporation, they are borrowing the money to buy
HOW long to obtain Coop Financing? The process will be determined by 1) The speed in which the
buyer can meet with the co-op board and 2) Our processing of the mortgage application;
3) Additionally the completion and recording of the recognition agreement. The normal
process for obtaining a letter of commitment is similar to that of a condo or single family
home. However, only after the letter of commitment is issued, can the board interview take
place. We work with every borrower to determine when the board application is due for their
individual transaction. Closings may sometimes be delayed, depending upon how often
the coop board meets.
CAN YOU HELP US FIND AN APARTMENT TO BUY? Of course! We offer
pre-qualifications for coops and can also direct you to Real Estate
Attorneys and Real Estate Agents who specialize in coop apartments in the different
neighborhoods and Burroughs. Simply fill out the financing form click here or call us at (631) 451-7400 and a representative will be providing you
with the information that you need to purchase a co-op apartment!
Jim Pendleton MrMortgageTM NMLS
all 50 states