Can Co-op buyers get 85% LTV mortgages from Banks?

85% loans are available but you will pay for it through higher rates.

If your "buyer" can't put 20% down, he's not really qualified. I wouldn't accept that kind of contingency nowadays. I hear stories of people with excellent credit, putting 20%+ down, and still they run into issues with banks. It would be like taking your place off the market on a flimsy promise.

85% financing isnt an issue for conforming loans. Rates are generally the same but they have to pay mortgage insurance since theyre putting down less than 20%. But please remember that the 85% financing or any financing for that matter is based on the lesser of the purchase price or appraised value. If for the some reason the appraisal came in lower then your buyer wouldnt be given 85% financing. Is the buyer putting down 15% because thats all the money they have or are they just looking to put as little down? sunny.hong@bankofamerica.com

I wouldn't sign with the buyer unless you see a path for them to get financing--unless your place has been on the market a long time anyway and you're just thrilled to have any offer whatsoever. I hope by now somebody required a financial statement or a preapproval letter or something from this buyer, also.

They have just provided a pre-approved letter for 85% based on the dollar amount we have agreed. I guess that still leaves the appraisal risk.

Even if they are willing to put down 20%, there's always the appraisal risk. Besides a pre approval letter, the best is a fannie mae pre approval. As far as paying mortgage insurance, that is not for the life of the loan by any means; as soon as the apartment goes up in value, and the ltv becomes 80%, the mortgage insurance can be cancelled.
esfundingco@aol.com

If you are really worried about the appraisal then maybe you have the place priced too high? Just a thought.