Finding a co-op apartment to purchase
It's important to recognize some of the differences in buying a co-op apartment instead of a condo:-Co-op apartments are more common than any other housing type in New York City. It's been estimated that co-ops represent up to 70% of the apartments in NYC. -When buying a co-op, the co-op has the final say about approving or denying a transaction. It is not uncommon for a co-op board to require the buyer and seller to agree to a price, sign a contract and for the buyer to obtain a loan commitment before the board interview can occur.-Buying from a "Sponsor" can sometimes mean that the typical guidelines for credit, down payment and even co-op approval are not required.-Co-op By-Laws vary by building and the Board of Directors interpretation may also vary. With that being the case, you can see apartments in 3 adjacent buildings and the 3 transactions would be entirely different.-Co-ops can have restrictions on credit score requirements, debt-to-income requirements, post-closing reserves and down-payment requirements. -To Finance an apartment, not only must the buyer be approved, but the co-op has to also be approved by the lender.- Your realtor should be able to assist you in understanding what the general requirements are for buildings as you are considering apartments.