Hi All, I am interested in buying a 2 bed in a coop that is not habitable. The electric isn't on, there are serious water damage issues, and more! No appraiser would deem the apartment habitable. What financing options are available? I have discussed this with several mortgage brokers and the general consensus is that it is not possible to get a loan for a coop that needs renovation before it can... [more]
Hi All,
I am interested in buying a 2 bed in a coop that is not habitable. The electric isn't on, there are serious water damage issues, and more! No appraiser would deem the apartment habitable. What financing options are available?
I have discussed this with several mortgage brokers and the general consensus is that it is not possible to get a loan for a coop that needs renovation before it can be occupied. The most experience broker told me this is because 'no legal closing documents exist' for coops that need renovation before move in. I understand this is because when you buy a coop you buy a share in a corporation, when you buy a condo or house you buy 'real property'. Anyone have any light to shed on this? I'm surprised lenders would leave this slice of the market on the table. In my case the current owners lack the means to make the renovations necessary for habitation. Is cash the only option?
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Response by Pawn_Harvester
over 15 years ago
Posts: 321
Member since: Jan 2009
hfa 203k
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Response by detournement
over 15 years ago
Posts: 31
Member since: Aug 2009
Thanks Pawn_Harvester, I'm pretty sure that Coops are not eligible for HFA 203k. If you know I'm wrong, want to recommend a mortgage broker that can make it happen?
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Response by ab_11218
over 15 years ago
Posts: 2017
Member since: May 2009
there are different meaning of "uninhabitable". from what i've seen, almost all coops are inhabitable. as long as there are floors, kitchen with a working faucet and a bathroom that has a toilet that can flush, it is considered inhabitable.
not having electric on is no big deal. there are many sponsors that turn electric off and still sell the units.
appraiser's job is to price the apartment, not to determine if someone can live in filth.
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Response by fraugirl
over 15 years ago
Posts: 3
Member since: Apr 2010
I would be interested in this too, the co-op I'm looking at is most certainly uninhabitable; no kitchen, no bathroom, no faucets, nada. Just some nice old wood floors and some walls. I can pay cash to purchase, but are there options for borrowing to rehab?
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Response by EShatz
over 15 years ago
Posts: 32
Member since: Jun 2008
Anyone have any info on loans for these situations? What about a loan for a coop that is habitable, but I would like to include renovation money with the mortgage?
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hfa 203k
Thanks Pawn_Harvester, I'm pretty sure that Coops are not eligible for HFA 203k. If you know I'm wrong, want to recommend a mortgage broker that can make it happen?
there are different meaning of "uninhabitable". from what i've seen, almost all coops are inhabitable. as long as there are floors, kitchen with a working faucet and a bathroom that has a toilet that can flush, it is considered inhabitable.
not having electric on is no big deal. there are many sponsors that turn electric off and still sell the units.
appraiser's job is to price the apartment, not to determine if someone can live in filth.
I would be interested in this too, the co-op I'm looking at is most certainly uninhabitable; no kitchen, no bathroom, no faucets, nada. Just some nice old wood floors and some walls. I can pay cash to purchase, but are there options for borrowing to rehab?
Anyone have any info on loans for these situations? What about a loan for a coop that is habitable, but I would like to include renovation money with the mortgage?