Home Buying in New York>Question Details

Darrell, Other/Just Looking in Staten Island, NY

Why do Coops have income restrictions that keep people out who could afford to live there?

Asked by Darrell, Staten Island, NY Wed Jul 9, 2008

I've been looking for a Coop or Condo in the Brooklyn/Queens region for the last 2-3 months or so, and it seems I keep running into the same wall, boards saying I don't make enough money. I'm looking for a 2br (Jr4 is ok) ~850 sq foot that is convenient to Manhattan.

I make ~56K a year, have good credit (700 ),have a stable job, I have money for a down payment, I qualify for a VA home loan, and my only current debt is my car loan(~13K)...so why aren't people begging me to live in their units? I don't think I have unreasonable standards, I'm only looking at units 220K and less and they keep demanding that I make 65-75K a year, or put down 35-40%. My realtor keeps telling me I should just look at 1br or studios, but I don't think I should have to lower my (already low standards). I've crunched he numbers and I can't see any reason I can't afford what I'm looking at, so why do HOA's keep turning me away flat out? I get they need to protect themselves, but still, why leave empty units?

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Answers

3
Have you looked at HDFC co-ops? They're created for low income or middle income individuals. You can't sell the apartment for market rate.

But to address your question... it's likely they feel you threaten their financial stability, however unreasonable it may feel to you. You didn't mention having any savings or additional liquid assets. Some co-ops in Manhattan require as much as 2 years of maintenance and your monthly mortgage payment in liquidity. Basically, if you lose your job or become disabled, they want to know you can still pay your mortgage and the maintenance.
2 votes Thank Flag Link Wed Jul 9, 2008
Find out more - without paying a broker to do so! - for free, by contacting the Urban Homesteading Assistance Board. Since 1974 UHAB has worked to create, support, and preserve affordable housing cooperatives for low - and middle-income New Yorkers.

Unlike many coops and condos, yes, we have had success with VA loans. Yes, we have affordable housing for people with a steady income like yours. And yes, we can work with you to find lenders who will help in covering the remainder of a payment on affordable housing coops.

Please visit our website, and come to a new homebuyer seminar. You sound like an ideal buyer for an HDFC.
http://www.uhab.coop
Web Reference: http://www.uhab.org
0 votes Thank Flag Link Wed Feb 11, 2009
you are being snobbed out in so many words. It si awful they can do this however they still do. You need to find a buyers agent who can assist you with finding out this information before hand so you dont get your hopes up to get squashed. Good luck in finding a nice home.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Fri Nov 7, 2008
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