Commercial coops have undergone a dramatic change recently. Until this year they had what was known as an eight twenty rule, stating that a New York coop had to make eighty percent of it’s income from owner occupied units and only twenty percent could come from renting out commercial coops. This rule has changed and now coop building associations can get fair rents for the commercial space and still be able to maintain the tax benefits for the owners of the residential units.
This in turn means that coops can afford better services and this in turn raises the value of the building and individual units. What does this mean for the buyer looking for commercial coops in New York? A better return on their investment, a more valuable home and the possibility of a better mortgage rate.
When in the market for a New York coop it is advisable to use our services as a mortgage broker. Our licensed loan professionals will be able to help guide you to the best buildings that will go up in value as well as be able to handle the entire lending process for you once you have submitted the required paperwork to us. The network of lenders we have available to work with will ensure you get the best possible mortgage that can be written.
Coops have always been a good investment and home buying option in a crowded city and the new ruling is making them an even better choice. The value of the building as well as the financial stability of the association will be taken into account as well as the ability of the borrower to repay the loan. Once all this information is gathered it s simply a matter of letting your broker do their work and get you into your new home as quickly as possible.
Get in touch with one of our loan consultants for more information.