Hi all -- I have a couple questions about my parents assisting me in making a purchase. I am currently in grad school with a well-paying job lined up after graduation. My parents are loaning me the money for a down payment. My issue is that although I will certainly have a future income sufficient to cover both the maintenance & monthly payment, I can't show any income right now, as I'm still... [more]
Hi all -- I have a couple questions about my parents assisting me in making a purchase.
I am currently in grad school with a well-paying job lined up after graduation. My parents are loaning me the money for a down payment. My issue is that although I will certainly have a future income sufficient to cover both the maintenance & monthly payment, I can't show any income right now, as I'm still a student. My parents & I are looking to buy in the near future to take advantage of low interest rates (and also so I don't have to go through the buying process while trying to work 80+ hours a week after starting my full-time job, which is common if not standard for newcomers in my field). How likely are co-op boards to take my future income into account when deciding whether to approve my application even though I haven't started my job yet?
Also, I am a bit concerned about the "spoiled brat" stereotype many co-op boards seem to have about children whose parents are assisting them in buying an apartment. I feel like I don't fit that profile, since I am in a very demanding grad program and simply don't have the inclination or free time to go out and party. I'm also not interested in coasting along on my parents' money and intend to repay them for the down payment as soon as I am able. Is the average co-op board likely to deny my application as soon as they see my parents are assisting me, or would most boards allow me to at least proceed to the interview so I have a chance to state my case? I know some boards do allow parental assistance, but many of the apartments I'm planning to look at don't explicitly state in the listing that parental assistance is permitted, so I'm concerned about this. Should I even bother looking at apartments whose listing doesn't state up-front that parental assistance is allowed?
Thanks!
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Response by prewarpassion
about 14 years ago
Posts: 20
Member since: Oct 2011
Your situation is not unusual. Essentially you will have to buy the coop with your parents. It's referred to as a co-purchase. No coop will accept you with a new job, right out of school. Many coops will be fine with this situation, you just need the right agent who can prescreen what buildings will allow it and which wont. Basically, if you don't pay, or lose your job, your parents are on the hook. Down the road, you can restructure the transaction.
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Response by buyerbewareNYC
about 14 years ago
Posts: 13
Member since: Jun 2011
Look into buying a condo. All they care about is if you have the money or not. You'll still have to co-purchase it with your parents. It'll be a headache, but its way less of a hassle than dealing with a co-op board.
Your situation is not unusual. Essentially you will have to buy the coop with your parents. It's referred to as a co-purchase. No coop will accept you with a new job, right out of school. Many coops will be fine with this situation, you just need the right agent who can prescreen what buildings will allow it and which wont. Basically, if you don't pay, or lose your job, your parents are on the hook. Down the road, you can restructure the transaction.
Look into buying a condo. All they care about is if you have the money or not. You'll still have to co-purchase it with your parents. It'll be a headache, but its way less of a hassle than dealing with a co-op board.