coops with less than 20% down payment

[jcoltrane]

Seems you've done well for yourself.

Above and beyond the average purchaser. An excellent example of how it s/b done.

Congratulations and continued good fortune.

One last thing, if you don't mind.

How did you find an attorney; what was his experience; and how was the experience? Was the attorney helpful in arranging and executing the purchase and closing?

[genjix]

Originally Posted by lionandmouse

Hi all,
We'll be moving to Queens this summer - looking mostly at Jackson Heights and Astoria. Our income and credit are very good, but we weren't planning on moving, so we don't have 70-100k saved up for a down payment. We've heard that some coop boards will allow 10% down payments, but can't get a sense of how common that is. We have to move for my new job, and we have kids so we would prefer to buy now so we don't have to move again in a couple of years. But does anyone have any advice on how a family with a solid income and great credit can buy a coop without 20% down payment?
Thanks!

Your looking for a $500k mortgage? 20% of 200k mortgage is $40k. which is the rage of queens coops, mid 200s is avg.

[bluedog2]

Originally Posted by jcoltrane

Seems you've done well for yourself.

Above and beyond the average purchaser. An excellent example of how it s/b done.

Congratulations and continued good fortune.

One last thing, if you don't mind.

How did you find an attorney; what was his experience; and how was the experience? Was the attorney helpful in arranging and executing the purchase and closing?

The lawyer I used was recommended by a friend who had used him in connection with the purchase of a house.He was what I would call a local(Bronx) general practice lawyer with probably 20 years or so experience with a lot of real estate,CO Op and Condo experience.

He seemed bright and knowledgeable and always answered calls and questions promptly.He was the one who suggested I go to the sponsor/managing agents office and review the board minutes and told me what to be looking for.He would have done it himself had I been willing to pay him considerably more than I did.His total fee for everything else (including attending the closing with me) was only 875.00 so I did not expect him to take a 1/2 day to travel and look at the minutes.

He also suggested that before signing the contract I go and stand outside of the building during the early evening and approach people coming home from work and ask them about the building,if there were any problems and if they were happy there.I was very hesitant to do this but I did.I stood outside and "interviewed" about 15 people in the space of a couple of hours.To my surprise,they all seemed very open and honest with their opinions.A few people had issues but they were mostly like being unhappy with the no pets rule or being unhappy with the no renting rule so it didn't bother me.I like rules and living in an orderly environment.I don't like the clash of entitlements that can occur in buildings with no rules and filled with people who feel entitled to whatever they want.

[UpsonDowns]

This is a must-read thread for those considering buying a coop.

[LizfromtheBronx]

This was a very helpful thread! Lots of good info and tips.

[SobroGuy]

Just for the record...your issue is less about a 20% requirement, and more about the total sales price. In other words, if you were buying a 2 bedroom co-op costing $135,000, 20% is only $27,000...quite affordable downpayment IMO. If you were buying a co-op for $1 million, 20% would be $200,000! Instead of wondering if you can find a co-op which is less strict, maybe you should lower your target sales price so you won't need such a huge downpayment. I would proceed cautiously with co-ops that require 10% or less, because it means they are putting themselves (and you if you become a resident) more at risk because people other residents have "less skin in the game."

[lionandmouse]

thanks again to everyone for the helpful advice. and as a reply to genjix, we are looking in jackson heights and astoria due to commuting needs and we need at least a 3 bedroom, so the range is 350-800. but we are very happy right now with the idea of renting for a while, while we continue our research. thanks again!!

[iceman16]

I am looking for a coop lender to lend on the "future value" of my home....I am doing contruction,and do not have enough equity for a standard cash out refi