Mortgage Financing for Co-ops in Hoboken, NJ – Serving California, Colorado, Connecticut, Florida, Georgia, Illinois, Maryland, New Jersey, New York (NYC, Manhattan, Statewide), North Carolina, Pennsylvania, Oregon, Rhode Island, South Carolina, and Washington D.C.
New to CO-OP Housing?
Here is some useful information to help familiarize you with the world of co-ops and co-op financing.
What is a housing co-op?
A housing co-op is people who together own or control the building(s) in which they live. Instead of buying “real” property, you buy stock, or a membership, in a cooperative corporation. That corporation owns the building, land and any common areas. As a co-op member, you are entitled to occupy a specific unit in the building. Members democratically govern the cooperative corporation and elect a board to oversee operations. The board has the right to approve all potential members and can terminate membership and evict residents who violate any part of the occupancy agreement.
Financing a co-op purchase is similar to paying for any other property, except that not all lenders offer co-op loans. Financing a co-op requires approving both the borrower and the building, so lenders need to review the building’s assets in addition to qualifying the borrower. Buyers considering a co-op or condo should carefully review the rules of the associations and boards as well as compare the fees from one building to another because they vary widely in what is included.
What is a share loan?
Similar to a mortgage, a share loan provides you with funds to buy shares of stock in the cooperative and the accompanying occupancy rights to a specific unit.
How does owning a co-op differ from a condo?
When you own a co-op, you do not actually own the rooms that comprise your unit, but shares in the overall ownership of the building(s). In condominium ownership, you actually own the interior space of the rooms that comprise your unit, while the condominium association owns the land, public areas and infrastructure of the building(s).
What factors will be used to determine my creditworthiness for a share loan?
Northstar Funding will evaluate your creditworthiness using underwriting guidelines applied to all mortgages. Decisions are based on credit scores, loan-to-value ratios, and debt-to-income ratios among other factors.
When you work with us, the benefits quickly add up:
- Purchase Loans
- Cash Out Refinancing
- Second Home Financing*
- Jumbo Loans
- Low Closing Costs
- Reverse Mortgages**
- Up to 90 Percent Financing*
Whether your co-op purchase is your exciting first step into homeownership, or you already own a co-op and want to refinance, call Northstar Funding for all your lending needs.