S-Corp Co-op Financing

So I just made an offer on a an apartment that I found out is technically an S-Corp. The brokers say that the board has been working for two years to change the Certificate of Occupancy to a Condo and expect to have it completed by this fall. I also found a couple blogs showing that closing were taking forever because purchasers were having trouble finding a residential lender that is willing to... [more]

So I just made an offer on a an apartment that I found out is technically an S-Corp. The brokers say that the board has been working for two years to change the Certificate of Occupancy to a Condo and expect to have it completed by this fall. I also found a couple blogs showing that closing were taking forever because purchasers were having trouble finding a residential lender that is willing to financing share of an S-Corp. I did a little searching and research and found out that this all has to do with the 80/20 laws of Co-ops. Prior to 2008 coops could only obtain a maximum 20% income from commercial space -- 80% was required to come from the tenants. Because of this most co-ops were charging below market rental rates to their commercial tenants. A few buildings, however, especially those in 'prime' locations, opted not to become a co-op and instead registered as an S-corp. This allowed them to effectively avoid the 80/20 rule and charge market rates to the commercial tenants and pay the building occupants with the revenue. In 2008, however, Congress eliminated this law allowing co-ops to charge market rate. It appears as though the building I am considering falls into this category. Does anyone have any further input on this? Is it possible to obtain regular residential financing to purchase shares in an S-Corp? If not, I suppose I have to either wait for the building to convert to a co-op or find another apartment. Any info would be helpful. [less]