If you are currently in the market to buy a cooperative as an investment property, you need to secure your financing through a bank or mortgage lender that offers competitive rates and reasonable terms. However, co-ops are not the easiest properties to finance, especially those that carry the label investment property. Therefore, you need a mortgage company that will find the financing you need to purchase or refinance a cooperative.
Many mortgage companies require you to put a large down payment on any type of co-op purchase financing. Sometimes lenders require more than 40 percent of the sales price as a down payment on a cooperative. However, the MortgageDepot will secure the financing you need with as little as 40 percent down. MortgageDepot will find you an interest rate that is competitive when compared to other brokers who deal with investment co-op financing.
Since banks are hesitant to lend money on any type of co-op, you may find that most banks will only lend you money on a straight rate and term refinance or purchase loan. Therefore, you must keep all of your options open and choose a broker that understands how investment co-ops work. Many brokers claim to understand how cooperatives work, but they really don’t understand how the legal complexity behind a co-op affects your ability to purchase or refinance a co-op.
Obtain a fast rate quote with our interest rate tool, and lock in a competitive rate with reasonable loan terms on your next co-op investment.