Co-op financing is different from condo or town house financing. Many co-op boards set the minimum down payment you must come up with. The remaining is usually financed by lenders who specialize in co-op financing. Since these lenders can’t use the property for security, their terms may be more credit driven than the usual real estate financing. Real estate brokers and co-op boards will often have a list of lenders who finance their units.
Also, be aware that many co-op boards will not allow shareholders to use their stock as collateral for loans once the original share loan is paid off. So you may not want to pay off a co-op loan early. Unlike single-family homeowners, you won’t have access to low interest home equity loans if you need one.
No comments:
Post a Comment