Refinance a CO-Op

You realize that you have to get permission from the co-op Board to refinance? They have their own regulations on how much of a mortgage you can take and also how much of a debt to earnings ratio you may have. The bank may be willing to give you a larger mortgage than the co-op will allow.

You may have some issues because I don't think Fannie Mae or Freddie Mac will accept investor coop loans. You will probably end up having to go with an adjustable rate with a private lender who underwrites their own loans.

Your best bet is to speak with a mortgage professional. Give them all your facts and figures. Ask them if there a way you can apply for a conforming loan on a property in CA. Your rate and terms will be more reasonable compared to a mortgage against a non owner occupied coop. If you need to go that route, you will need a to apply for a portfolio product. As others have said, the board at your coop has rules in place limiting the amount of financing they will allow. This is something you also need to research before moving forward.

I have lenders who will finance an investment coop. But before beginning the process, check with the board to see if they would approve a loan for you. My guess is they would.
Feel free to contact me.

Ellen Silverman
E. S. Funding Co.
Licensed Mortgage Broker since 1990
NMLS#60631
Licensed Real Estate Broker since 1987
Esfundingco@aol.com
Tel:212-786-9682

JSM31,
From what I'm reading, the OP wants to finance 100% of the the new purchase: the down payment with funds from the equity in the coop and the balance with a conventional loan on the new property.