Property Q&A in New York>Question Details

Nielenoelani, Home Buyer in Ohio, NY

I'm interested in buying a one bedroom HDFC coop in the Morningside Heights area.

Asked by Nielenoelani, Ohio, NY Fri Feb 20, 2009

I believe that many coops need 20% down. Is that the case for this HDFC coop. I'm from Ohio, so I'm not familiar with the NYC way of doing things. I don't really understand how someone is supposed to make under $65K a year but have $25k - $30K for a down payment.
Also, what is the typical amount of closing costs, and is anyone lending in NY with everything going on in the economy? Is there a flip tax on this HDFC? If so, what is it? And also, everything I've read says something about getting a lawyer. In Ohio, it's not common practice to have to hire a lawyer to buy a house. Why is that necessary in NYC?

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Hi, and thank you both for your answers. Ms. Greenberg, is it common for banks to deny someone based on the building? Or is this common with HDFCs?
0 votes Thank Flag Link Mon Feb 23, 2009
New York CIty is unlike any other market in the country, especially in that it is practically the only place where co-ops exist (which basically means that you are buying shares in the building and leasing the apartment, as opposed to buying the apartment itself like you would with a condo). You will need at leaset 20% down. Yes, lenders are lending, but they are being extra careful these days, so it might be helpful to find a good mortgage broker. Sellers usually pay the flip tax, and the flip tax varies from building to building. And yes, you will need a real estate lawyer - both the buyer and seller will have attorneys representing them, that is a must. I work with HDFC buyers and sellers in Morningside Heights, so I am familiar with the process. Feel free to contact me if you need further assistance, I would be happy to help.

Richard Daub
Prudential Douglas Elliman Real Estate
0 votes Thank Flag Link Fri Feb 20, 2009
This is my listing and, yes, unfortunately this coop only allows 75% financing. This is not an HDFC requirement but it's a decision the coop board made nearly two months ago.
The flip tax on all apartments in this particular building is 30% of the net profit after taxes.
In NYC you need an attorney to help you go through the financials, the board minutes and other regulations of the apartment. I don't think its mandatory but certainly not advisable not to use one.
I had a few mortgage companies look into the building and they were pretty sure they could give a mortgage. However, when you pre qualify with a bank or mortgage broker, it's good to have them look into the building you are planning to buy into.
I can send you an approximate estimate for the closing costs in this building if you like.
0 votes Thank Flag Link Fri Feb 20, 2009
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