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OP: Good luck. I backed out of buying in NYC due to boards! (Never went before one, but after I read up on them, changed my mind about even trying and I have excellent credit, etc.,
So you didn't actually back out of buying a co-op, you just decided not to.
If you can get approved for a mortgage then you should be fine (unless your dti is very high). If it doesn't work out it's often personal- which isn't something you can change. Coops often reject because they don't like the seller, they don't like the buyer or they don't like the sale price. There isn't much you can do, other than be very well funded. Have a large down payment, reserves etc. Just be mindful and don't let other take advantage or bully you as a buyer. Buying is a transaction, it should be mutual.
The reality is if you make average money (compared to the neighborhood) and don't get into a coop they are probably overly controlling and you won't be able to resell the property easily. Some boards can be invasive if it doesn't work out consider it a bullet dodged.
Given the market is soaring if they reject it's for a reason and it's not because of a few missed payments. If the board is open minded it shouldn't be a problem.
What does your representation say- your attorney and buyer's agent? They should prep you for the coop interview. If the seller's agent is representing you they should be help you.... it should be noted they really rep the seller, the primary agreement is with the seller.
I'm not sure if you're buying a Mitchell lama or hdfc or something. If you're buying an income capped property make sure you're aware of the current climate around regulations and legislations regarding taxes, abatements, resale values. These programs are going to likely undergo changes due to budget deficients.
Quote:
Originally Posted by bebe182
So I'm in the process of purchasing a co-op in the Manhattan, I currently own one in Brooklyn which is up for sale. I've been approved for the mortgage and am now just about to submit the board package to the co-op board.
I have a few negative hits on my credit ( a few late payments from a few years ago), other than that everything else looks pretty good. The building allows co-purchasers, so I'm using my dad who has excellent credit (never missed a payment in his life!) and has a pretty significant amount of assets. The seller's agent--who lives in the building and used to be on the board herself and knows everyone who is currently on the board--was aware of the few negative hits I have and ran it by the guy who's in charge of finances on the board and he said it shouldn't be an issue. I'm still a bit worried though, because he's not the only person on the board, I think there's like 6 other members. So just wondering if anyone has had or knows of a situation like this and got through the board without issue? I know the NYC boards are much tougher than most, but this is not a Park Ave or Fifth Ave building.
If you can get approved for a mortgage then you should be fine (unless your dti is very high). If it doesn't work out it's often personal- which isn't something you can change. Coops often reject because they don't like the seller, they don't like the buyer or they don't like the sale price. There isn't much you can do, other than be very well funded. Have a large down payment, reserves etc. Just be mindful and don't let other take advantage or bully you as a buyer. Buying is a transaction, it should be mutual.
The reality is if you make average money (compared to the neighborhood) and don't get into a coop they are probably overly controlling and you won't be able to resell the property easily. Some boards can be invasive if it doesn't work out consider it a bullet dodged.
Given the market is soaring if they reject it's for a reason and it's not because of a few missed payments. If the board is open minded it shouldn't be a problem.
What does your representation say- your attorney and buyer's agent? They should prep you for the coop interview. If the seller's agent is representing you they should be help you.... it should be noted they really rep the seller, the primary agreement is with the seller.
I'm not sure if you're buying a Mitchell lama or hdfc or something. If you're buying an income capped property make sure you're aware of the current climate around regulations and legislations regarding taxes, abatements, resale values. These programs are going to likely undergo changes due to budget deficients.
I don't think those things are an issue, this isn't the primary residence for the sellers' and the husband just passed away after we went into contract, so I'm thinking the board will be sympathetic to the widow. As for the sale price, it's comparable to the other units in the building that are the same size, so doubt that would be an issue.
My down payment is a little over 50% of the purchase price. The buyer's agent lives in the building, used to be VP of the board and is close friends with the current CFO of the board, she thinks I should be ok and said she'd be shocked if I got turned down. The agent has been great, she's done the board package with me, and goes over it in fine detail to the point that I sometimes get frustrated but I know she's just doing her job and at the end of the day she wants to make sure I get approved.
The building is not Mitchell Lama, hdfc or income capped, it is a luxury building on the UES.
I'm only using him as a co-signer because my co-op hasn't sold yet, so I know co-op boards usually don't like people carrying two properties unless it's a Pied-a-tierre. In Manhattan it's pretty common for co-op boards to allow co-purchasers whereas it's not typical in the outer boroughs (My current building in Brooklyn doesn't allow it either). He's just a co-signer for the co-op itself not for the mortgage, plus that's not much of concern to me since the realtor seems to not be bothered by it and she used to be on the board so she would know if that's a hit or not against me.
It doesn't matter why you're using him. It conveys the idea that you're not fully adult, and that you'll go whining to your father to get him to intervene when you have problems in the building.
So you didn't actually back out of buying a co-op, you just decided not to.
True.
I made a special trip to NYC with the intention of making an offer on a co-op.
I toured properties with an agent (very unprofessional and inept) for 2 or 3 days and when I was being shown a place I loved on Sullivan Street (which my dumb agent didn't even screen for dogs - after we had been in there an hour, I asked the showing agent about the board and he told me as long as you leave the building every day to go to work, you should be fine).
So I basically got educated and changed my mind about putting myself through the board scrutiny (which I read is arbitrary and can be brutal).
I realized that my age (old!) would most likely be a factor for the board (though they would never cop to it). I decided not to put myself through the absolutely brutal interviews I have read about).
I had my pre-approval letter with me and was ready to make an offer, but the boards are *******s.
...if the board rejects someone with a 50% down payment, solid income, low dti and 700 ish credit score I'd be shocked. Unless it's known to be an extremely exclusive building you're very well qualified.
Good luck. I think you'll likely get approved. Like I said if you don't, move on. You're a qualified buyer most buildings would be fine with what you described. If you don't get it there will be more apartments on the market in the next 1-3 years once the covid dust settles.
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