Financing in 10019>Question Details

Nets2009, Home Owner in 10019

Will anyone refinance an investment coop apartment in Manhattan?

Asked by Nets2009, 10019 Mon May 16, 2011

It seems like no one does these anymore - I have strong credit and have been employed for over a year, what are my options?

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Hi Nets2009,

I assume you already own the unit that you want to refinance, so that board approval is probably not a big issue. If they are allowing you to own it they will let you refinance it as long as you can afford it. The real issue is finding a lender who will finance you. I would look to commercial lentders. The problem I have found is that the LTV is very low. you will probably only get between 55-65% of the value of the unit bcause it is considered a commercial investment. Try speaking with:

Michael Spencer
M&T Bank
Business & Professional Banking Group
134 Mamaroneck Ave
White Plains, NY 10601
914-644-8101 (ph)
914-948-9363 (fax)
914-255-5856 (cell)

If you need anything else, Let me know. All the best,

609 Kappock Street
Suite 1A
Bronx, NY 10463
(718) 432-5000 (Office)
(718) 432-2091 (Fax)
(917) 974-2600 (Cell)
0 votes Thank Flag Link Mon May 16, 2011
you have to check with banks if the building itself is financeable by conventional lenders. If the building is on their "ok to lend" list than the bank will be looking at your personal financials and credit score. I would be happy to connect you with a direct lender and he can answer all your questions in couple minutes. If conventional lenders have this building on their "do not lend" list , you would have to look for a small balance sheet lender.

Elena Ravich
Rakita Realty
646 593 7207
0 votes Thank Flag Link Fri Oct 12, 2012

You may want to look at some regional banks who are looking for options to lend/increase their debt cap. Larger banks are really mitigating risk now, and as the other brokers here have mentioned - not many co-ops are investor friendly - this may turn the larger banks off. Additionally, most banks have a list of approved co-ops. You can easily call different banks and speak with a loan specialist who can tell you if they would invest in your co-op.

Other than those things, everything with the refinance will be the same as if you were refinancing your home - well, you will need board approval, but other than that - it should be painless.

If you need assistance, reach out or contact some of the other agents that the brokers below have recommended.

Travis R. Old
CitySites Real Estate Group
0 votes Thank Flag Link Mon Apr 30, 2012
Most lenders will not finance an investment coop. I do have private lenders who would be interested if the coop allows investors.
0 votes Thank Flag Link Tue May 17, 2011
I just found this thread and am looking into financing my NYC co-op. It used to be my primary residence, but now I keep as an investor unit, which is OK with co-op. My LTV is only 25% (75% equity) I have excellent credit, but self employed. Loan amount is slightly above conforming limit. Your thoughts?
Flag Mon Sep 24, 2012
You might also want to consider equity partnering with another investor.

Please feel free to contact me if you're willing to do that, because I might be interested. Additionally, you could reach out to some other investors in your area.
0 votes Thank Flag Link Mon May 16, 2011
Most co-ops expect the unit to be owner-occupied. There are a few exceptions here and there, but they are rare. If you were to find such a co-op, bear in mind that a lender considers an investment property to be a different animal than a primary residence, and your rate therefore will be different. Also being employed for a year is good, but co-ops generally want to see a lengthier work history.
I would strongly suggest you consider a condo as a more feasible alternative to the scenario you have outlined.

Hope this helps.

Jenet Levy
Halstead Property, LLC
212 381-4268
0 votes Thank Flag Link Mon May 16, 2011
An investment coop? most coops are not investor friendly. They usually require the shareholder to be a primary resident or they may allow pied-a-terre. They usually have sublet policies that don't allow unlimited leasing unless it is a condop.

I'm sure there are lenders that will refinance but a refinance in a coop is contingent on board approval.
0 votes Thank Flag Link Mon May 16, 2011
Mitchell Hall, Real Estate Pro in New York, NY
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