Why no mortgage for Mitchell Lama co-op? (real estate, buying)

[WestTower]

Afternoon, may please someone explain why can't you take mortgage and the benefits of the first time buyres when purchasing a Mitchell-Lama co-op?
People showing up with the bags of cash, buying subsidies housing is ok, but mortgage is not. I have never heard of anything like this.
Please smart and knowledgeable people, explain me how the Mitchell Lama co-op system works. Very very thank you!

[bluedog2]

Because in Mitchell Lama co ops you don't really own anything to put up as collateral and you can't really sell your interest in the co op on the open market. It must be sold by the management company to someone on a waiting list at a set price. All you or your heirs ever get back is the amount you originally paid plus any capital assessments.

Mitchell Lama co ops don't want banks involved( except for any underlying mortgage on the property) and banks don't want to lend on the units anyway.

This might help in explaining:
https://cooperator.com/article/qa-se...hell-lama-unit

[manimgarbage]

They don't deal with banks. They pass that onto you.

[NYC refugee]

They used to be affordable. Now they think you're going to turn up on the affordable housing list with $40k to spend.

[manimgarbage]

Not sure what youre on about. They continue to be one of the best deals in the nyc real estate game. It's an excellent way to bury your roots and solidify your position in nycs middle class. Makes movement into the upper middle class all that easier. There's a reason they call it winning the lottery.