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Old 08-02-2011, 05:05 PM
 
Location: NYC
110 posts, read 286,812 times
Reputation: 72

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Hello again all! I'm back with another real estate question.

I found an HDFC co-op for sale that's been completely renovated and is selling for $75,000 (200% more than the last selling price-$25,000- of the other apartments). It looks like it's awesome, so I asked to see it. I meet the income requirements for sure.

The issue is: the owner started mentioning that banks may not be willing to give me a loan for the place because its price is so different from the rest of the apartments in the building. He started suggesting I look for banks that deal with HDFC co-ops. I was looking at TD or Carver for a mortgage, but he made it sound like it'd be tough to get pre-approved.

Do banks really care if the apartment is an HDFC co-op or about the price of the apartment compared to the others in the building? HDFC owners with mortgages, did you have any trouble acquiring a mortgage from a larger bank?

Thanks again
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Old 08-02-2011, 06:12 PM
 
Location: NY,NY
2,896 posts, read 9,428,797 times
Reputation: 2063
I know nothing about HFDC.

Generally, though, lenders will not mortgage a property for more than its market value.

Lenders determine market value, by recent sales of comparative properties. In your case, sales of other apartments in tthe building or immediate area.

Yours being HFDC makes it 'different' and many lenders will only deal with 'normal' situations. So, your choicee of lenders will probably be limited.

I would consult a really good mortgage broker and/or a local broker might know of a friendly lender.

I would also be wary, given the facts, that you may be paying too much.

I suggest that in any purchase agreement re the HFDC apt include a provision stating that the purchase price be subject to your lender's assessment. Also, that in the event a lender is not found, that your down payment be returned in full, and that no penalties be applied for failure to fulfil the agreement.
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Old 08-03-2011, 06:24 AM
 
Location: Manhattan
24,409 posts, read 34,247,668 times
Reputation: 11925
moccawai.

I'd think twice here.
Most HDFC's are limited equity holdings that allow for the sale only either back to the co-op or for a price that essentially allows only a VERY limited profit for the seller.
It sounds like this guy may be trying an end-run aound the HDFC rules.

Talk to somene on the board if you can, or the managing agent, or just another tenant and ask. Alternatively call HPD and ask about this particular building.

You will find this helpful:
HPD-Owned Property Development - Rehabilitation - Tenant Interim Lease Apartment Purchase Program

Yes, there are income limitations set both by the co-op and by HPD:
Quote:
It should be noted that under the private Housing Finance Law, all HDFCs must be low income. If the specific definition of low income for your HDFC cooperative was time limited and has expired, your cooperation must adopt a new standard
If you open this can of worms, please make sure you understand all the wiggles.
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Old 08-04-2011, 05:25 PM
 
Location: NYC
110 posts, read 286,812 times
Reputation: 72
Quote:
Originally Posted by Kefir King View Post
moccawai.

I'd think twice here.
Most HDFC's are limited equity holdings that allow for the sale only either back to the co-op or for a price that essentially allows only a VERY limited profit for the seller.
It sounds like this guy may be trying an end-run aound the HDFC rules.

Talk to somene on the board if you can, or the managing agent, or just another tenant and ask. Alternatively call HPD and ask about this particular building.

You will find this helpful:
HPD-Owned Property Development - Rehabilitation - Tenant Interim Lease Apartment Purchase Program

Yes, there are income limitations set both by the co-op and by HPD:


If you open this can of worms, please make sure you understand all the wiggles.
Thanks, I'll probably cancel the viewing because it seems like it's really not worth it
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