Home Buying in 11372>Question Details

Justaktar, Home Buyer in 11372

what income is needed for co op?

Asked by Justaktar, 11372 Thu Dec 29, 2011

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Steve Riddle’s answer
Co-ops By-laws generally have a 20% down commitment minimum. This is often so due to the "PMI" obligations for this type of ownership. When you are buying a Co-op you are really buying shares of the corporation which allow you to occupy a specific unit. Since you hold no real property, you have a disadvantage of being able to convert your holdings to cash or trade holdings. Sponsor held units typically are less restrictive in this requirement due to the "Trade" provisions in the prospectus.

Any way you look at it, Be sure to get the Corp.house Rules, The last filed financials, and a copy of the prior years Yearly meeting. I also recommend having your agent check the buildings department records, County Court records, (Plaintiff's Filings under the corp name, or search the cases by the Atty of record for the corp) HPD Filings, as well as the FHA registry.

If you drive and need secured parking, check the public bulletin board to discover a waiting list. Don't be surprised to discover it runs ten years deep!
0 votes Thank Flag Link Wed Jun 13, 2012
There is one important exception. SPONSOR coops! Sponsor units do not require Board Approval. Some Sponsors allow 10% down also. You still need to secure mortgage. Get an good Mortgage Broker (or Loan Officer of a Bank) through references from friends or relatives and get a Pre-Approval (not Pre-Qual). Do not shop around with too many people for mortgage, that may effect your credit score. After that, you can confidently shop for Sponsor Coops.
Any questions, feel free to contact me, no obligation.
- Belal
0 votes Thank Flag Link Fri Dec 30, 2011
Every co-op board varies as to income requirement.
Web Reference: http://ninaharrishomes.com
0 votes Thank Flag Link Fri Dec 30, 2011
The requirements for co-op 20% downpayment,Completed Purchase Application,Contract of Sale,Credit Check Authorization,Financial Condition and interveiw with broad members.

347 932-0609
0 votes Thank Flag Link Fri Dec 30, 2011
Since each building sets their own rules, necessary income does vary from complex to complex; therefore if looking to purchase a co-op, simplify your search and consider working with an agent of your own. Be aware that a mortgage pre-approval letter is required in order to determine your price range and for any offers to be taken seriously.
0 votes Thank Flag Link Thu Dec 29, 2011
Terry, is correct that each coop has their own rules on income. You would be safe if the mortgage, maintenance and your monthly bills are 32% or less of your gross income.
0 votes Thank Flag Link Thu Dec 29, 2011
A good rule of thumb is 1 weeks gross income should equal 1 months mortgage plus maintenance. You would also have to factor in your monthly debt. Best bet is to talk to a Realtor who can help you determine what you can afford. Bear in mind that it is easier sometime to qualify for a mortgage than it is for a coop board. And yes it can vary a bit in each cooperative. Best of luck.
0 votes Thank Flag Link Thu Dec 29, 2011
income depends on the coop building ranging from 45k to 92k i have coops for sale contact me

firdos k
0 votes Thank Flag Link Thu Dec 29, 2011
Hi Justaktar, thank you for your request. Every Coop has it's own requirements. Some want debt to income ratio (DTI) and others want a certain salary What are you looking for, what price range, how much of a down payment are you planning, and do you have any animals? Speak to a mortgage broker/banker and find out what you can afford on your salary, they will run your credit (only once)- your credit scores will determine what interest rate you will be charged....Terry K 718-614-316 cell or email me TKorahais@ellimancom
0 votes Thank Flag Link Thu Dec 29, 2011
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