There are many variables at play here.

First, the co-ops here sometimes do not allow for parents to buy for children. Even getting a "gift" from dad is frowned upon in some of the stricter ones. They run all your credit and bank statments, so don't think for a minute that $50K appearing in your bank account suddenly one month (or even $10K over 5 months!) will go unnoticed.

Second, there is a thing known as a sponsor unit of a co-op which is when the building has the rights to the unit and this is usually more flexible for a situation like yours. The main drawback with co-ops are the sublet policies should you decide to leave for a while.

Lastly, your budget will determine if you can even afford Manhattan. The interest rates and fees are all manageable with the right minds at work for you. Take time to get pre-qualified and also realizer that co-ops will want to see 6mos-2yrs of liquid funds to cover the monthly payments INCLUDING maintenance and mortgage.

Your window to do all of this is getting smaller as a purchase here can take three months minimum if all goes well from the start to finish of the process for you.

Sun Mar 30 2008, 00:10

Speak to some trusted lenders and see what they can do for you. Typically, investment financing is more expensive (downpayment and interest rate) than getting an owner occupied loan.

We work closely with a mortgage company that is licensed in 45 states, does owner/non-owner occupied financing, and they have very competitive programs and rates. For instance, 85% of our investors use this company, and they are offering 10% down, 30 year fixed, 10 year interest only option, mid to high 6's for interest rates, on non-owner loans.

These guys are great and always do a good job for our investors. If you'd like, I can have you speak with the National Sales manager and see if he can help you?

Good luck to you!

Denton Ward
eRealtyInvestors

Mon Mar 24 2008, 11:15

There are some coops in NYC that allow parents to buy with or for children. You must show, that you can afford the monthly mortage and maintenance payments though. How have you been looking for apartments? Have you been looking online? In the New York Times? Some people's expectations clash with the realities of city living when they get here and actually see what $500 or 1 mil will buy. Have a Realtor help you with your search and send you listings that fit your profile. This way you know what to expect when you arrive.

Mon Mar 24 2008, 08:25

You can have your father co-sign on the loan with you. It would not be considered an investment.

Sat Mar 8 2008, 12:44

that is correct. Not only that, co-ops and condos do not necessarily allow owners whose parents are paying...they need to show not only ability to pay, but cash reserves sometimes in amounts necessary to cover 6 months-2 years. It is not easy to purchase in NYC.

If you contact me offline, I can refer you to a mortgage broker who can discuss the investment angle with you regarding the difference in rates or perhaps another way to set up the mortgage/deed that would not require "investor" status.

Thu Mar 6 2008, 17:45