Coop/ high sponsor ownership

It's not necessarily bad, but you should check whether the sponsor has been selling apartments as they're vacated, or renting them out at market rate, or a mix.

Some like to sell immediately and carry negative cash flow on the remainder, others like to sell some and keep just enough to balance the RC/RS ones, and others keep them all. I'd be bothered only if it was the last case.

My sponsor takes the first option, and has gone from 50% to 17% in 23 years. If yours is a typical 1980s co-op, 30% after 30 years suggests the sponsor's been selling some and keeping some.

I think only a few units are RC/RS and they listed one for sale last week which should bring the ratio down.

There are a handful of lenders that will finance in coop buildings like this - with the high sponsor owned percentage. It is typical to NYC. Resale will not be an issue because outside of retail banks you mentioned, that typically abide by Fannie Mae and Freddie Mac guidelines for coop lending, there are portfolio lenders across NYC that will lend in such scenarios.

-Stan
Stan Aleshin
Mortgage Loan Originator | NMLS # 1172098
http://www.mortgagemaster.com/saleshin

I previously bought a condo unit in a similar type building (sponsor owned more than 20%) and was able to obtain a mortgage through a mortgage broker. Sold it two months ago and my buyer did not have much difficulty obtaining mortgage either. Still, definitely something to consider in case future mortgage lending standards tighten...

I realize that co-op rules can change on a dime, but try to feel out how the current board feels about subletting. When you're that close to the margin, just a couple shareholders subletting could be enough to tip the balance and trigger automatic mortgage refusals.