Home Buying in Mount Vernon>Question Details

Colleen, Home Buyer in White Plains, NY

FHA mortgages for co op

Asked by Colleen, White Plains, NY Wed Nov 21, 2012

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6
Colleen,
Most buyers opt for FHA for the lowdown payment. The coop decides the minimum down payment which is usually 20%. FHA is for the purchase of real estate. In purchasing a coop you are buying shares in a corporation that gives a proprietary lease for a particular unit.
0 votes Thank Flag Link Fri Nov 23, 2012
Hi Colleen,

Just closed a co-op Wednesday that had a SONYMA loan, and the interest rate was 3% - an unbelievable rate for a 30 year fixed mortgage! However, the buyer put down 20%.

Sally Griffiths, GRI, Green
Real Estate Salesperson
Weichert, Realtors
914-419-2655
0 votes Thank Flag Link Fri Nov 23, 2012
Hi, unfortunately the FHA doesn't back loans for coops. If you are a first time home buyer you can look into a SONYMA loan. They allow for a minimum 3% down payment, it can be gifted (if needed) and you can roll your closing costs into the loan, very similar to FHA. There is an income max and other wualifying criteria that a mortgage professional can share with you.

Happy Thanksgiving!

Sincerely,

Christopher Pagli
Accredited Buyer Representative
914.406.9023
0 votes Thank Flag Link Thu Nov 22, 2012
Do you mean condos....generally co-ops are not fha eligible..
0 votes Thank Flag Link Thu Nov 22, 2012
Hi Colleen,

FHA mortgages are only available for the purchase of Real Estate (such as a house or a condominium). When you buy a co-op, you get a Proprietary Lease and a "stock" certificate. Since a coop is not real estate, but actually shares in a corporation, FHA loans cannot be used for that type of purchase.

Sorry,

Bob
0 votes Thank Flag Link Thu Nov 22, 2012
Is that a Question or a Statement?
0 votes Thank Flag Link Thu Nov 22, 2012
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