HDFC COOPS: What Are They and How Can You Buy One?

The economic crisis in New York in the 1970s made many home-owners fail to raise their home payments. The result was thousands of homes left in disrepair, abandonment and foreclosure. These properties lay around under-utilized, which led to the development of the Housing and Development Finance Corporation (HDFC).

The HDFC went ahead and bought these properties at low prices, and offered them to shareholders at reasonable rates. As a HDFC coop shareholder, you get a number of benefits. The best is that you get to pay little or no tax on the property. This makes such properties ideal for low-to-middle income home-owners because of low rates.

When you buy shares in a HDFC coop, you get a number of units depending on the number of shares you hold. You have to stick to by-laws created by the coop board at the time of incorporation. Each coop is unique, which is why the by-laws in one coop will not be similar for another coop building even in the same locality.

Why Go for HDFC Coops?

There are various reasons why these coops are suitable for you:

  • You get a break on property tax, transfer tax, city and state income tax and mortgage recording tax.
  • The price of the apartments is below the prevailing market value.

All these point to the fact that you get coop units at affordable prices, both in purchase price and monthly maintenance fees.

How do You Qualify for HDFC Coops?

When you present your application for review and approval, the coop board focuses on your income and credit status. You must be able to afford monthly payments, and mortgage payments if applicable. If you need a coop mortgage, the lender usually asks for pre-approval.

How can you find the Right HDFC Coop?

One of the best ways to get HDFC coops in your area is by working with us. At MortgageDepot, we offer financing for HDFC coops in various areas of the country. We have details of thousands of coop buildings that you can pick from so that you also enjoy the benefits these properties offer.

Click here for our Approved Coop Buildings list.

If you’re interested in a co-op loan, please contact us for more information.

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