Trulia San J…, Home Buyer in San Jose, CA

Are CoOps common in San Jose?

Asked by Trulia San Jose, San Jose, CA Thu Dec 13, 2012

Help the community by answering this question:

Answers

4
BEST ANSWER
There were several back in the 1990's that were funded directly by HUD. When their loans were paid off in the mid 1990's they have the option of converting to Condos or remaining a Coop. Because of the value of housing, some converted to Condo associations. I manged one in East San Jose for a number of years but I'm not sure what their status is. Out of the three in that neighborhood, I know one is a Condo Association and the other is restricted 55+. Teri is correct, the one on Payne is a Coop.

It's a good concept if you can keep the cost of ownership down. In my 12 years we did a lot to provide low to moderate income families a chance at earning share equity.

David Sciplin
david.sciplin@cbnorcal.com
Web Reference: http://www.davidsciplin.com
1 vote Thank Flag Link Thu Dec 13, 2012
No. I only know of one that was in existence and that was on Payne Avenue in Campbell.
1 vote Thank Flag Link Thu Dec 13, 2012
Trulia:

No. Although prevalent on the East Coast, they are NOT common here and are actually very hard to buy due to the way title is held. Most West Coast lenders will not lend to COOPS because of this – there are actually a very limited number of lenders out there providing loans. A higher-than-normal down payment is usually required, completely ruling out FHA and VA buyers.

Additionally, COOPS typically must be owner occupied and frequently come with other restrictions as well.

For these reason, COOPS tend to be much harder to sell and consequently end up being valued less than normal condos.
0 votes Thank Flag Link Fri Dec 14, 2012
Hi Trulia San Jose, The coop form of ownership is very common on the east coast and other states but is very limited here in San Jose and Silicon Valley. As mentioned by the other comments, there are only a few in Santa Clara County, and there are some challenges with this form of ownership. For one, it is a challenge to get financing as most banks do not provide it here. Funny, I wonder if they provide alot of financing in the east coast? Hmmm. They have a tendency to be a little lower in price because of the challenges but it can still be a nice property to buy or invest. I seem to recall one complex converting to condos since there are more benefits than the coop system.

James Endo DRE 00993009
Broker, ABR, CRS, CDPE, IMSD, QSC, SRES
http://www.facebook.com/siliconvalleylifestyles411
Direct: 408-445-3281
Serving Silicon Valley Since 1987
0 votes Thank Flag Link Fri Dec 14, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer