Buying a Co-Op: What does guarantor really mean?

guarantor will guarantee that your maintenance will be paid.

co-owner will get screwed when your mortgage or maintenance is not being paid.

tough transaction to do. co purchasing means all parties will be on the mortgage and have to provide all the documentation. If you refi down the road, everyone will have to be involved. i would definitely not recommend it.

Thanks

Interesting.

Why did these "several brokers" not tell you to just look for something more affordable?

Probably because there is no such thing as "affordable" in Manhattan

Then Yuppie should be renting, no?

Hi Yuppie,

Currently going through the same process right now and having a co-purchaser is a major pain. The main difference between a co-purchases and a guarantor is what you need them for.

The guarantor only guarantees the maintenance so you would only need one if you could individually qualify for the mortgage but the co-op board is still worried about your liquidity and ability to pay maintenance.

The co purchaser is there for when your income is not high enough to get the mortgage, so you would need one in order to even get the mortgage.

Just a word of advice, be prepared to be hounded for weeks on end by the mortgage company and the board for every possible form of documentation of your financial position. There is also endless amounts of paperwork to do.

What is the OP dies?
Is the guarantor still on the hook?

Thanks for the comments.

Strangely enough, I asked Chase whether both co-purchasers need to be on the mortgage and they said no. I easily qualify for the mortgage myself based on income -- the guarantor/co-purchaser is needed only to appease the co-op board.

NYCMatt- Thanks for the advice. In case you don't know how to read, renting is less affordable than buying these days.

>Just a word of advice, be prepared to be hounded for weeks on end by the mortgage company and the board for every possible form of documentation of your financial position. There is also endless amounts of paperwork to do.

Umm, anyone regardless of financial status should be prepared for this when buying a coop.