Insurent now can be used as a rent guarantor. Is there any company that can be used as a coop maintenance guarantor in Manhattan, NY?

Asked by cgjamwj@live.com, New York, NY Thu Aug 1, 2013

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Mitchell Hall, Agent, New York, NY
Mon Aug 5, 2013
In NYC a rental apartment is usually leased for a 12 month term, 24 months at the most. Purchasing a coop is permanent. A guarantor for 1 years rent is quite different than a guarantor for life.

Coops that allow guarantors or co-purchasers will want the guarantor to guarantee maintenance payments for ever.

However, I just checked Insurent's website because I was intrigued by your question. The site does say it is a guarantor for coops and condos owners. In my opinion that means it guarantees rent payment to coop and condo owners that sublet their apartments.

It would be up to each individual coop as to whether they would accept Insurent as a guarantor. Coop's have their own discretion regarding approving or rejecting a prospective purchase.

It is certainly an interesting concept since many potential renters and buyers in NYC do not have a wealthy family member that can be a guarantor or co-purchaser.

Best,

Mitchell Hall
Lic Assoc RE Broker
The Corcoran Group
mhall@corcoran.com
0 votes
Anna M Brocco, Agent, Williston Park, NY
Sat Aug 3, 2013
Keep in mind that co-ops have their own financial requirements that must be met in order to be approved, and if one doesn't meet such requirements on their own, not sure attempting such a purchase is a good idea...
0 votes
Joseph Hasti…, Agent, Bayside, NY
Thu Aug 1, 2013
No such company that I ever heard of for guarantee of maintenance payments. I would agree to some extent with Ms. Chappelle that boards do require a low DTI and a buyer must have more than adequate assets to buy in. There is also a need of post closing liquidity so as to aviod a situation as you've mentioned though not necessarily 2 years worth. That depends on the building and the requirements set by the board.

sounds like an interesting idea but it would be a paid service which would add into your monthly DTI. and so it goes. Good luck.
0 votes
Belal Mohd, Agent, Rego Park, NY
Thu Aug 1, 2013
The answer is "NO". Each co-op makes its own decision and would not disclose its reasoning process. I suggest you do not attempt to buy a co-op until you are ready and no longer need a "guarantor".
0 votes
Carlyn Chapp…, Agent, New York, NY
Thu Aug 1, 2013
Since you have to meet the 28% debt to income ratio and most co-ops ask to see that you have 2 years worth of maintenance and mortgage saved, I would say that it's save to assume the answer would be no.

Hope this helps.
0 votes
Tom Dawson, Agent, New York, NY
Thu Aug 1, 2013
Never heard of anyone doing this. But if it's questionable as to if you can pay the maintenance, it's questionable as to if you should be buying and if the board would approve you without you being able to show sufficient assets.
0 votes
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