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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3
Nielenoelani, Home Buyer, Ohio, NY
Mon Feb 23, 2009
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
Richard Daub, , New York, NY
Fri Feb 20, 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
917-657-6532
richard.daub@elliman.com
0 votes
Adina Greenb…, , New York, NY
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
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