Home Buying in New York>Question Details

Stacy Margol…, Home Buyer in Brooklyn, NY

We want to buy a co-op for my mom

Asked by Stacy Margolis, Brooklyn, NY Fri Jan 11, 2013

We know a condo would be easier, and if we can't figure out the co-op thing, we'll go that way. But we found a building where the board would be fine with the unit being occupied by a direct family member. We would put a substantial amount down, but would still need to take out a mortgage. My mother will not be able to show the income to support the mortgage, so we can't put it in her name only. We were hoping to do one of the following: we buy it entirely in our name and she occupies it, or we co-purchase. We understand the co-op board will be fine with either option. The issue is the bank. Our mortgage broker says that if we are not the occupants (option one) it will be seen as an investor property, for which there are very few co-op loans and terms are not good. He also said banks will not allow co-purchasers for co-ops. Anyone know any way around this? Thanks in advance for your help.

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Ricky Smithline’s answer
The best thing I could do to help you is to give me the area you need to buy in, the price range, size of the apartment you are looking for etc. this way I could find those buildings that might allow your situation.
0 votes Thank Flag Link Mon Jan 14, 2013
it looks like both, your mother and you can be the joint owners with both of your names on a coop stock certificate and on a proprietary lease. Another option would be to buy it on your own name as a second home (if you do not intend to use it as a primary residence) and have your mom's name added to the lease as a person who will be living in the apartment. It is often the case when only a husband is getting a mortgage and both husband and wife own a coop and have both of their names on the stock certificate & proprietary lease (i.e., they act as co-purchasers). You should speak to direct lenders who are more experienced with coops, it should not be considered an investment coop because you will not rent it out and lenders I worked with did not have any problems with co-purchasing
Would be happy to share my direct lenders contacts or assist otherwise.
Elena Ravich
Rakita Realty
646 593 7207
0 votes Thank Flag Link Fri Jan 11, 2013
Apparently, you should call Chris Connor. Many rules involving mortgages are a bit more flexible when family members are in the discussion. Best of luck!
0 votes Thank Flag Link Fri Jan 11, 2013
Hi Stacy, Owner occupants must live in the property. Consult with a couple of other mortgage brokers.
0 votes Thank Flag Link Fri Jan 11, 2013
The co-borrower would have to live in the unit also.
0 votes Thank Flag Link Fri Jan 11, 2013
Yes - I agree with the other poster. You should be able to find a lender who will approve the co-purchase, especially since you are co-buying with your Mom. Try talking to a few other mortgage brokers. Here are a couple of people you may want to try. They are both excellent. (I hope I'm allowed to do this on Truila)

Harold Sokol / Manhattan Mortgage : http://www.manhattanmortgage.com/people.asp?lo=hsokol

Vanessa Thatcher / Atlantic Home Capital: 631-564-2701 Email: vthatcher@athccorp.com

I hope that helps.

Let me know if I can be of any further assistance.

Good Luck!

Vincent J. D'Allessandro
NYS Licensed Real Estate Broker
C: 917-597-4534
E: vjdprops@aol.com
0 votes Thank Flag Link Fri Jan 11, 2013
Perhaps you live there initially with your mom.....
0 votes Thank Flag Link Fri Jan 11, 2013
Hi Stacy--
There may be other extenuating circumstances here that your mortgage broker is aware of, however I have closed on co-purchases similar to the situation you present, except that it was parents buying for/with their adult child, rather than the other way around. I would look further into the co-borrowing scenario - he is correct in that you do not want to go the route of you being the sole borrower with an investor / non - primary residence loan. If I can be of any additional assistance, please feel free to contact me, contact info is below.
Chris Connor
Vice President
Douglas Elliman
1995 Broadway, 4th Floor
New York, NY 10023
Office: 212-769-9838
0 votes Thank Flag Link Fri Jan 11, 2013
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