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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