It really adds up with Co-Ops....

Real Estate Agent with Yes Homes Realty, Ltd.

A recent article in an AM NY free newspaper indicated that due to fallout from the economic we can expect co-op boards to become even more strict with approval requirements.  I can't imagine how that can possibly be based on a recent experience.

Co-op management boards vary from property to property.  Most require a maximum financing of 80%/minimum down payment of 20%.  If that's not bad enough, some management boards require that the Purchaser show a bank reserve equivalent to as much as a full year's mortgage payments and monthly maintenance fees.

To that, add fees for processing the board application; responding to mortgage bank's inquiry; move-in deposit (at least this is refundable); and credit checks; plus fees to apply for a mortgage, closing, and moving costs, we're easily looking at north of $75,000 to get into a one-bedroom apartment.

Whew - it really adds up with Co-ops, and I can't imagine what more the management boards can impose by way of stricter approval criteria.....



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