How can a foreigner buy co-ops in Manhattan?

http://streeteasy.com/nyc/talk/discussion/33006-f-coops

Simply put: highly unlikely in the vast majority of coops.

"Mortgage approval doesn't seem to have issues."????

You mean banks have loosened their underwriting criteria to such an extent that they will make a 30 year loan to someone who might be kicked out of the country in 3 years? I guess if that's true then the coop board won't mind underwriting any potential losses if you skip town. You have a temporary visa that can get cancelled if you get fired. Your risks to both a mortgage lender and a coop are huge, in my opinion.

Easier with a condo.

Larger buildings tend to be easier. The most important thing is simply to find one that will take someone on a visa. Place as many assets as you can- 2 yrs maint at an absolute minimum- you will need more in the US anyway to qualify for a mortgage.

We bought our first apartment (co-op) while on 1-year visas, combined 3 5 years of U.S. credit history. This was 13 years ago. No guarantors. We had no trouble finding lenders then. As for the co-op, we bought from an original buyer so it didn't require board approval. We got about 30% more space for the same price in a co-op (2 br over 1br). 2nd purchase was also a sponsor unit. By the time we bought for a 3rd time, we had green cards.

My advice: be upfront with brokers. A neighborhood specialist should be able to tell you where you can buy, given past history.

Comimg in all cash helps.

I bought in a 50 unit NYC co-op on an H-1B. NYC housing discrimination law forbids discrimination based on "alienage or citizenship status" but as we all know, that is neither here nor there with a co-op. Mortgage is indeed no problem -- all they care about is that you can remain in the country legally for a year or six months or something.

I was able to show in the board package that I had a long credit history and substantial ties to NY/NJ area, that I had been with my current employer for many years, and that my employer was working on the green card process. That was more than enough, I think. The seller's broker blew her top when she found out (after seeing my board package) that I was not a citizen -- this freaked me out a bit -- but the board turned out to be no problem. I don't think it is necessary to volunteer the information before you are asked, and I think it would have disadvantaged me if the sellers found out before we went into contract. I actually had my green card in hand by the time I closed.

By the way, I didn't offer nor was I asked to put any maintenance in escrow.

I don't know much about the legal niceties, but I would think that coming in all cash would hurt you, because: (i) you wouldn't have been vetted (such as it is) by a bank, (ii) there is no bank to pay maintenance if you default, and (iii) wouldn't the bank be keener and better equipped to deal with the foreclosure than the board or management company?

Sunil, please don't call yourself a "foreigner"; you're an "immigrant". Use the more positive word -- "foreigner" has the connotation of someone who doesn't live in the country and who might not speak English, and why lump yourself in with those groups?

"You mean banks have loosened their underwriting criteria to such an extent that they will make a 30 year loan to someone who might be kicked out of the country in 3 years? "

Goldie, what percentage of H1B visa renewals are rejected? I don't know the answer, but where I live now, in Japan, over 96% of working visa renewal applications are accepted. Despite this, and unlike in America, banks will generally refuse you outright when trying to get a mortgage, even if you have 90% down. You either pay cash or convince a foreign bank to lend to you -- and that's usually impossible because banks require you to be a resident of the country they're in.

Let me ask a question about co-op boards. Are they allowed to ask about the particulars of a potential resident's visa, beyond confirming that they're legally US residents? I thought that such details were protected.

This isn't an unusual situation. I'm currently working with two non-U.S.-citizen clients. Some thoughts:

1) the proper term of art in the industry is "foreign national."

2) Any building that says "diplomats welcome" is certainly open to you.

3) Some other co-op buildings are too, but you'll have to campaign in them. Having an H1B (which is seen as the top of the visa hierarchy) will help. You'll have better luck in certain neighborhoods. Your broker will help.

ali r.
DG Neary Realty

SE has a sponsor unit search.

On the UWS alone (eliminating all the recent conversions of dubious quality):
123W93, 251W95 (in contract), 102W80, 320W84

80-era conversions (still co-ops, rather than condos) tend to have sponsor units come on the market every now and then.

On UES:
http://streeteasy.com/nyc/sale/695305-coop-155-east-93rd-street-carnegie-hill-new-york

First & foremost, find a money laundering friendly financial institution.

A good number of them abound, & can easily be recognized by this official seal, which by law must be prominently posted at their entrance:

http://thumbs.gograph.com/gg53722747.jpg

Best of Luck!

We have had no issue closing in co-ops with H1B visa holders, but many were on track for a green card. Certainly no issue with financing.

Keith Burkhardt
The Burkhardt Group

sunil: for my first purchase of a apartment in a small co-op in the west village in 2004, i was on an h1b and had no problem getting a motgage and clearing the co-op interviews. wasn't asked by either party. for my re-fi in 2009, post financial crisis, no question asked by my lender. for my second purchase in 2012, my lender (TD Bank) did require that at least one borrower be a GC holder (i was by then, and my wife is american). however, i don't think other banks had the same requirement. as for the interviews, i wasn't asked about my citizenship status. the co-op board was super friendly and were thrilled at having a diverse group of shareholders. this again was in the village. as long as you can get a bank to lend, then the interviews should be ok, for the most part. if they don't work out, you probably don't want to be living in the co-op in the first place. hope this helps.

Thanks a lot guys!! Hope it works out...

matt, turn on the red light!