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I am considering a co-op that allows 90% financing, but the broker is insisting on 80% only. Is it possible to go with 90%, and a few months or a year later get it refinanced from 80% to 90%, assuming the bank allows it? Any advice from someone with knowledge in this would be appreciated, thanks.
Why is the broker insisting on 80%?
Maybe broker doesn't think you'll be approved for financing at 90% or thinks your offer will be rejected in favor of someone needing only 80%?
I can put 20% down no issues with that, but i like having leverage. The broker is insisting on 20% down because there was a rejection earlier. But due to the fact that co-op by-laws say 90% financing allowed, shouldn't that mean the board shouldn't be obsessive about 20% down as long as the applicant's financials (liquidity after closing) is very good?
Also, any idea how banks consider 90% financing on co-ops (I know it's ok for condos but not sure about co-ops).
Why don't you talk to a mortgage broker or banker and find out?
there are plenty of coops that have 90% financing on the books but will not allow it after 2008 fiasco. 20% means no PMI/HELOC and better rates.
i'm ashamed to say it but "Listen to the Broker"
i wouldnt dream of tying up my money in a coop that allows 90% financing.
if it aint already a mess, it will likely produce one.
bet the financials are a mess too.
In think that maybe the broker is insisting on 80% because there's a far better chance the deal will go through as far as financing goes.. PMI is costly. If you're not planning on making this your primary residence forget about financing.
90% financing could be more costly.
Rates went up a this week.
4w101.com only requires 10% but currently nothing is avail.
Maybe the coop is by FENWAY PAWK
In the event there are multiple bids, all things being equal, the guy putting only 10% down looks less desirable than the one putting down more. In a mkt with stong buying interest like today & with low inventory levels, your broker wants to present a strong offer & get you the apt. He/she is watching out for your best interest & wants to get the deal done. If you can put down more & want the place, my advice would be to follow your broker's advice.
Refis have a conforming size limitation initial primary resident mortgages do not.
a coop permits 90% financing should be avoid, it's likely filled with whole bunch of irresponsible people
The larger issue often is what a bank will loan. This is based on the viability of both the building and borrower and can expose the seller to some risk. Many owners instruct their brokers not to accept any offer with financing of more than 80% because they feel they can get such offers and don't want to go to contract with 90% financing only to find out the bank won't do it - a waste of everyone's time.