coop board approval advice (sublets, apartment, rent)

[dvv]

This is my first time buying into a coop... I recently got married and my wife and I have different financial profiles: I have good credit, long tenure with the same employer, and little debt (just a car loan). My wife has a lot of student loan debt and bad credit (due to collections actions for minor debts like phone companies, ect) and a very short work history.

I can cover all of our costs (including servicing my wife's debt) on my salary, but I am concerned that we will be rejected by the board based on my wife's financial status.

Are coop boards mainly concerned with our ability to pay or will they have a problem with my wife's poor financial choices in the past? Is anyone here on their board's admissions committee?.. and do you have insight into the best approach?

[bwap_bonk]

have the purchase contract and mtg placed in your name, not jointly, and they won't care about your wife.
of course your wife may object!

[dvv]

She's ok with that actually... I just thought that it might look like we were trying to hide something. But my wife just told me she asked the broker, and the broker recomended the same thing, so that sounds like a plan. thanks

[bwap_bonk]

Originally Posted by dvv

She's ok with that actually... I just thought that it might look like we were trying to hide something. But my wife just told me she asked the broker, and the broker recomended the same thing, so that sounds like a plan. thanks

I just bought a coop in Westchester myself. I was so worked up for the board approval, it was a joke! Of course all my other friend's who bought told me this beforehand, but it was still stressful.

good luck.

[RadioGuy93]

The biggest 'thing' that a coop board is looking for, is confirmation of your finances. CAN you afford the apartment. DO YOU have enough savings to cover the maintenance, should you lose your job, etc.

My in-laws recently sold their house and moved into a coop. My father-in-law was appalled at the questions they wanted to know. They're more than financially stable, but hated the notion that they had to provide lots of documents. It's about the same procedure of applying for a mortgage!

If your wife's past credit history can be explained, they're not going to necessarily deny you because your wife has a bad credit score. If the bad credit is due to while she was a student, and before you two were married, it's a non issue. They interview you, and I'm sure it would be a question that they would ask.

[helen220]

I have decent credit but have a lot of credit card debt. I have been looking into purchasing a co-op and stop paying rent and invest in something for myself and my family. I am a single parent for many years now with no financial assistance. My son will be going to college next year and my daughter has two years left in high school. I don't know where to begin. Any info would be glady appreciated.

[bwap_bonk]

Originally Posted by helen220

I have decent credit but have a lot of credit card debt. I have been looking into purchasing a co-op and stop paying rent and invest in something for myself and my family. I am a single parent for many years now with no financial assistance. My son will be going to college next year and my daughter has two years left in high school. I don't know where to begin. Any info would be glady appreciated.

All they care about is debt to income ratio. Total amount of debt doesn;t matter if your income is high.

[helen220]

I've seen alot of ads where no board approval is needed? What exactly does that mean. Does the downpayment for the co-op need to be high?

[MizMamie]

A unit that's "no board approval" is most likely a sponsor apartment. A purchaser of a sponsor unit still has to abide by all co-op rules (pets, alterations, sublets, etc.) and your down payment would have to be what the co-op requires - at least 10% and sometimes much more.

[helen220]

ok. thanks for your help.