Skip Navigation
StreetEasy Logo

financing a sponsor unit in a coop building

Started by vgizdavcic
almost 14 years ago
Posts: 1
Member since: May 2011
Discussion about
I have been offered a contract to purchase a sponsor unit in a cooperative building but the problem is how do I finance this purchase? I used to live in this building but than had to move out because my mother passed away and the lease was in her name. Now the apartment is up for sale. I currently living in a rental in Manhattan and need to do so for anothjer 4 years untill my children finish school. So this apartment that I want to buy is not about large investment returns but about taking advantage of a good price, maybe rent it out for 3-4 years and then m,ove in. How do I get loan for this apartment since it is considered an "investment"? I'd appreciate some answers. I have good credit scores and earn about $150,000. I'd appreciate any advice anyone can give me.
Response by saiyar1
almost 14 years ago
Posts: 182
Member since: Jun 2010

Are you sure you can rent it out immediately after purchase? It is a coop afterall.

Ignored comment. Unhide
Response by apt23
almost 14 years ago
Posts: 2041
Member since: Jul 2009

yes, be sure that the co op will allow you to rent for that long. I can't imagine that most co ops would allow it since they don't like investors and will not be too amenable to stretching any co op rental rules on your behalf.

Ignored comment. Unhide
Response by streetsmart
almost 14 years ago
Posts: 883
Member since: Apr 2009

If it's a sponsor unit then there's no board approval. But as far as the co-op to allowing you to rent it out, some co-ops allow some kind of renting and it was your mother's apartment. You can explain your present rental situation, and that you plan on moving back when your lease expires. Can the sponsor use his influence in this matter.

As far as financing, I am a mortgage broker and can assist you in getting a loan.

Ellen Silverman
www.esfunding.instantlender.com

Ignored comment. Unhide
Response by bobnay
almost 14 years ago
Posts: 74
Member since: Oct 2011

Some sponsor units can be bought with the buyer inheriting the sponsor rights as long as the new buyer uses it as an investment property, i.e. rents it out to someone who is NOT an immediate relative. You can ask your NYC real estate attorney to look over the sponsor's offering plan to be sure.

Ignored comment. Unhide

Add Your Comment

Most popular

  1. Mamdani and rent control
    47 Comments
  2. USB says NYC is one of least bubbly RE markets
    17 Comments
  3. Why Are More Millionaires Renting?
    139 Comments
  4. More on land leases
    35 Comments
  5. Dentist and gold crowns
    23 Comments