Has anyone ever bought a co-op without 20% down?

I just looked at a coop where the down payment is 40%. The agent was able to tell me that the board is absolutely inflexible about the 40% down in this building. Condop or condo may work better for you. Also, you have to prepared for coop boards that expect you to have cash left over after the purchase. My friend's daughter buying her first $300,000 studio had to show $30,000 in the bank after the dust settled. I looked at one bedroom asking $725,000 and the agent was able to tell me that the board expected me to have 1.5 million "liquid" after the closing.
So, ask the agent (they know the buildings) and be prepared and try for a condo.

Most do require 20% and will be inflexible on that. Perhaps you should look at a smaller apartment in the outer boroughs where you can buy something in your price range.

It really depends on the coop. Some coops require only 10% down payment and 3 months of total living expenses in liquid assets AFTER closing. As anonymous said, ask the agent.

mdmarin, which neighborhood(s) are you interested in?

Just curious about the 40% down apartment... was the price discounted to reflect such a high downpayment or was it actually priced due to "perceieved" snobbyness of the co-op???

What are the requirements for 740 Park?

I'm considering any neighborhoods south of 96th st and north of Houston.

The coop requirements are a bit insane. It's basically a case where these hippies who sit on the board bought in the 70s and now want to exclude everyone else.

that's why i just bought a condo - similar salary but a little more in downpayment available.

I'm in the process of buying a place w/10% down. This will be my second in a couple years, although I went through another co-op interview on a place I didn't close on. So, I figure that's 3 within a few years. I've never been very "liquid", and I think it really depends on the building. Even if I had 20% to put down, I wouldn't because cash is cheap to borrow and I'd rather have it in the bank than tied-up in my apt. Plus, I wouldn't even want to live in a building that requires anything over 20%- that usually implies a certain amount of arrogance that I don't wanna live amongst.

broadwayron, how did you get past the coop board?

I'm also in the process of buying a place and I'm only putting 10% down.

I think places that only require 10% down have a more laid-back attitude than a building that requires 25% or more. The kind of buildings with high down payment requirements probably wouldn't let me in, even if I had the cash. I don't look (or act) very Park Ave.
Again, I think it really depends on the building.

Response to: Just curious about the 40% down apartment… was the price discounted to reflect such a high downpayment or was it actually priced due to “perceieved” snobbyness of the co-op???
The building is 44 west 62. I like the building and it's location and apartment 11C at $799,000. But it does need total renovation and new windows (about $20,000) are required within 2 years of purchase.

With 70K down it might be wise to just save another year. If you must buy right now I would take a look at condos in clinton. There are a few buildings where you get away with 10% down, low monthlys and they start in the 500s but very small 1 beds, mostly studios.

Down payments are a good idea. No-money down ARMs are not. I'm glad the latter are vanishing...not soon enough.

"The building is 44 west 62" ... MMmm rather high maintaince :)

Keep in mind - on a condo you need 10% down + 6% to close and you'll have to pay PMI or take on a second higher int loan to fund the other 10%.

Is there a rule of thumb percentage for closing costs on coops? Is it more or less than the 6%?

I just closed on an existing condo in Manhattan and my guidance was 2% to 3% for closing costs and that's where mine ended up. It may be 6% for a new construction due to fees to the developer etc. For an existing condo guidance is 2% to 3%.

broadwayron, a coop that requires 10% down may be more 'laid back' but can also be a red flag that the building may not have strong financials. buildings may require 20% as a way of instilling financial discipline and attracting more financially sound buyers. this is because when you buy a coop you are buying shares of a a building....so any one buyer who defaults can bring the ship down.

I kinda figured the buildings which required only 10% down would have BETTER financials, otherwise they would start requiring more down. Like, I've noticed on some places for sale that seem way overpriced, they often require 25% down or more, and I figured that wasn't a coincidence. But, you could be right. If a co-op had poor financials, my bank wouldn't give me a loan, because it needs to have positive cash flow to be on their pre-accepted list.

the one's that have skyrocketing maintenance fees are the ones to watch out for, 1k+? What do they need all that for, giving the doorman a 6-figure salary??

I am pretty sure 44 west 62 is on a land lease meaning the coop does not own but rent the underlying land. No 6 digit salary for the doorman. These are funny to valuate and not super popular.

I'm going back to 44 west 62 tomorrow and I'll ask about the land lease. Thanks for the heads up. I also note that the apartments are listed for very many days. Also found a little blurb from the management company (Trump Greenthal) referring potential buyers to one of their staff - Bonnie Kirschenbaum - but their website idsn't working yet.

44 west 62 probably has long listings because of its crazy high maintenance which doesn't justify the price. . . .(i.e. not really discounted)

Best to shy away from land lease properties.

Hi anonymous...did you ever find out if 44 west 62 is a land lease building? Thanks.

I really hope mdmarin didn't end up buying.

I don't know about land lease -- but when this post was started, 44 West 62 was Dutch.