A co-op board in Brooklyn requires a debt-to-income ratio of no more than 25% for prospective buyers. What does this ratio typically include in New York co-op financing?
Correct Answer
C) The monthly share loan payment plus monthly maintenance fees
New York co-op boards typically calculate the debt-to-income ratio by including both the monthly share loan payment and the monthly maintenance fees, as both represent ongoing monthly housing costs that affect the buyer's financial capacity.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A comparison of the major mortgage loan types—conventional, FHA, VA, and USDA—covering their eligibility requirements, down payment amounts, mortgage insurance rules, and best use cases.
Predatory lending refers to unfair, deceptive, or abusive lending practices that impose unjustified terms on borrowers, often targeting vulnerable populations. It includes practices like excessive fees, inflated appraisals, and unnecessary refinancing.
RESPA is a federal law that requires lenders to provide borrowers with information about settlement costs, prohibits kickbacks and referral fees, and limits escrow account deposits. It applies to federally related mortgage loans.
More Financing Questions
Compliance case Cedar Docket frames the issue this way. A Florida buyer borrows $272,000 on a purchase price of $320,000. What is the loan-to-value ratio?
A lender in Montgomery is considering whether to initiate foreclosure on a defaulting borrower's residential property. The borrower has missed six consecutive mortgage payments. Under Alabama law, which step must the lender complete FIRST before the property can be sold at a foreclosure sale?
In Delaware financing, which theory is practiced?
Audit memo Cedar Case highlights this Florida rule. The purchase price is $360,000, and the lender will lend 90% of the price. How much cash down payment must the buyer bring?
A California buyer is comparing two deed of trust loan offers. Loan A has a 5.5% interest rate with 0 points. Loan B has a 5% interest rate with 2 points. Which tool required by federal law helps the buyer compare the true cost of these two loans?
- → A Florida real estate licensee is helping a buyer understand loan-to-value ratios. The buyer asks about the maximum LTV typically allowed for conventional loans without private mortgage insurance (PMI). What should the licensee explain?
- → A borrower in Greenville, South Carolina defaults on her mortgage payments. The lender wants to recover the property. Which process must the lender follow under South Carolina law?
- → Tom defaults on his mortgage in Fargo, North Dakota. His lender, Heartland Savings, wants to foreclose. Which of the following correctly describes the foreclosure process Heartland Savings must follow under North Dakota law?
- → Under Alaska's Deed of Trust Act (AS 34.20.070–34.20.135), which of the following is NOT a required party to a deed of trust?
- → James Wilson's share loan application for a co-op in Staten Island was approved. What will secure this loan?
- → Tennessee has which redemption period after foreclosure?
- → Private Mortgage Insurance (PMI) is typically required on a conventional loan when the loan-to-value (LTV) ratio exceeds what threshold?
- → A homeowner in Oklahoma City is purchasing a property with a sales price of $320,000. The buyer is obtaining a conventional loan with a 20% down payment. The lender charges an origination fee of 1.5% of the loan amount. What is the total origination fee the buyer will pay at closing?
- → Deficiency judgments in Alabama are:
- → Sarah Martinez is purchasing a co-op apartment in Manhattan for $750,000. Her lender explains the financing structure for cooperative units. What type of loan will Sarah receive for this co-op purchase?
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