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Old 04-18-2012, 11:04 AM
 
12 posts, read 18,948 times
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I'm planning to apply the mortgage for a coop in queens, and someone told me that the flip tax would affect mortgage.

For example, If I'm going to buy a coop with a purchase price of $300,000, and want to finance 80% (240,000 mortgage). If the flip tax is 2.5%($7,500), then bank will re-calculate the value as being $300,000 - $7,500 = $292,500. Then the 80% would be $292,500 X0.8 = $234,000 which is $6,000 less than I expected.

Has anyone heard about this? Is that true?

BTW, do you know any good broker/bank doing mortgage?

Thank you!
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Old 04-18-2012, 11:31 AM
 
Location: Manhattan
20,144 posts, read 26,425,454 times
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The flip tax is an amount paid by the seller back to the co-op.

When you sell you will do the same, so the bank may be VALUING your co-op at 2.5% less than it might otherwise when determining IF they should lend on the property.

It shouldn't have any bearing on your mortgage becasue YOU need to pay $300,000 for the place in the final analysis. If you want to kick in $60,000, the bank will STILL have to kick in $240,000.
The seller wants $300K.

I do not see how any payments expected of the seller to the co-op would affect that transaction between you and your bank at all.
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Old 04-18-2012, 11:51 AM
 
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Thank you Kefir King, I hope it will work out like you said.
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Old 04-18-2012, 09:28 PM
 
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The catch is that the bank might not be willing to lend at less than an 80% LTV, so you'll have to kick in the extra $6000 as part of the down payment.
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Old 04-19-2012, 08:45 AM
 
12 posts, read 18,948 times
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Quote:
Originally Posted by nybbler View Post
The catch is that the bank might not be willing to lend at less than an 80% LTV, so you'll have to kick in the extra $6000 as part of the down payment.
That's what we don't want to do...
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