What is a Co-op Loan?
A housing co-op is when a cooperative group (usually a corporation) owns a piece of real estate and allows individuals to purchase a share of the corporation. Someone living in a co-op does not own the unit they are living in, rather they own shares in the corporation that owns all of the units. These shares grant you access to live in the unit you are purchasing.
What is Required to Buy Into a Co-op and Receive Co-op Financing?
In order to obtain co-op financing, the co-op board must approve you. When applying to the co-op board, there will be credit and financial history checks, employment history verification, character references and several other deciding factors taken into consideration.
“I have achieved the impossible with the help of GuardHill. I refinanced an investment property in a Co-op building in NYC!” – Jade F. (Yelp)
Getting a Co-op Loan
As well as the co-op board approving you, the co-op building itself must also be approved by the lender. In order to approve the building, the lender has to contact the managing agent of the building in order to access the necessary information. The borrower and realtor can get the managing agent’s information from the seller’s agent or by contacting the building directly. Managing agents typically charge a fee for providing the information needed that can range from $50 to $300.
While we are approving the building, we will also be approving you. This part of the process is the same regardless of whether a co-op mortgage is involved or not.
GuardHill’s Extensive Co-op Financing Experience
We know most of New York City’s co-op buildings and their respective requirements. GuardHill is one of the top co-op lenders in the Tri-state area, and our team is prepared to turn your desire for a co-op residence into a reality.
Because we lend in many of New York City’s co-op buildings, GuardHill is already approved to lend and is able to offer fast approval times for our clients buying into a co-op. When applying for a co-op loan, GuardHill will need updated budgets, financials, and questionnaires from the building for every transaction. This helps us document any updates or changes from previous documentation on prior loans.
Working with GuardHill on your co-op mortgage gives you access to our network of co-op lenders with expansive lending capabilities. Our team is able to match your lending needs and desired building with the most favorable mortgage terms, all with one application.