Financing in White Plains>Question Details

Maria Fermin, Other/Just Looking in White Plains, NY

Is it possible to buy a coop with a flip tax of more than 5%?

Asked by Maria Fermin, White Plains, NY Mon Mar 4, 2013

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I've recently had several clients who were interested in coops with more than 5% flip tax. My bank and most are NOT able to lend on a coop with higher than 5% flip tax (you shouldn't want to either). It becomes an issue with a lender because say you're putting 20% down payment and the flip tax is 10%. This means that even though you should have about a 20% equity on the unit, the day you sell you really have 10% equity after their 10% flip tax. I have not heard of any lender being able to fund these. If i were you i would search for a coop whose flip tax is reasonable and will not impose such high flip tax. Good luck!

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648
5 votes Thank Flag Link Mon Mar 4, 2013
Nina, have you seem any lenders who can close on these coops?
4 votes Thank Flag Link Mon Mar 4, 2013
Each co-op building is different, therefore the likelihood exists....
1 vote Thank Flag Link Mon Mar 4, 2013
Yes, I've seen them as high as 10%. Check with the co-op board before making your purchase.
0 votes Thank Flag Link Mon Mar 4, 2013
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