Scot Phelps, Home Buyer in 10009

If I owned a co-op, am I technically still considered a "first time home buyer"

Asked by Scot Phelps, 10009 Mon Jun 30, 2008

If I have owned a co-op in the past, am I still considered a first time home buyer for loan purposes since I
technically didn't own property, I owned shares in a cooperative corporation and held a lease to a unit?

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Answers

9
Nice try! Unfortunately though, I think you'll find the answer is no. Although you are correct, a coop purchase is only a lease, not real property, it is treated to all intents and purposes as real property, for example by the IRS.
1 vote Thank Flag Link Mon Jun 30, 2008
To Kfrank,
If the half who has never purchased anything buys the property in their sole name, they would qualify for first time buyer's loan. However, if the assets and income from the other half are necessary or desirable for a joint mortgage, then I would expect that to disqualify the application from a first time buyer's loan, but check with a mortgage broker as I could be wrong.
0 votes Thank Flag Link Sun Jul 13, 2008
To Kfrank,
If the half who has never purchased anything buys the property in their sole name, they would qualify for first time buyer's loan. However, if the assets and income from the other half are necessary or desirable for a joint mortgage, then I would not expect that to negate the requirements and for the loan not to qualify, but check with a mortgage broker as I am not 100% sure.
0 votes Thank Flag Link Sun Jul 13, 2008
What is the general rule if 1 half of a married couple had owned a Co-Op and the other has never owned anything?
0 votes Thank Flag Link Sun Jul 13, 2008
If you are trying for SONYMA financing they will be looking at your past 3 years tax returns to see if there are any tax deductions for mortgage interest or property taxes. If it has been at least 3 years since you have owned a home, then you are a first time home buyer.
0 votes Thank Flag Link Wed Jul 2, 2008
How long ago did you own the co-op? Regardless of whether it's a co-op or not, it is still treated as real estate property.

Definition of a first time buyer: A household who has not owned its principal place of residence within the last three years.

Good luck!
0 votes Thank Flag Link Mon Jun 30, 2008
If owning the Co-Op in the past was 3 years ago or longer you would be considered a first time home buyer again with many lenders. What kind of benefits are you looking for under the first time homebuyer criteria?
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0 votes Thank Flag Link Mon Jun 30, 2008
Joanna is correct with her statement.
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0 votes Thank Flag Link Mon Jun 30, 2008
I think you'll find the answer is no, since although you are correct, a coop purchase is a lease, not real property, it is treated as a real property purchase by the IRS.
0 votes Thank Flag Link Mon Jun 30, 2008
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