In New York, all of the following statements about cooperative apartment financing are true EXCEPT:
Correct Answer
A) FHA loans can be used to purchase cooperative apartments with board approval
FHA loans cannot be used for cooperative purchases regardless of board approval because FHA loans are mortgages that must be secured by real property. Cooperative purchases involve personal property (shares and proprietary lease), not real property, making FHA financing unavailable.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs available to eligible veterans, active-duty service members, and surviving spouses. It offers no down payment and no private mortgage insurance requirements.
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