Sarah Chen is a real estate agent in New York representing a buyer interested in both co-op and condo units. She needs to explain the financing differences to her client. Which statement about New York co-op vs. condo financing is accurate?
Correct Answer
B) Co-ops typically have more restrictive financing requirements and board approval processes
Co-ops in New York typically have more restrictive financing requirements, including higher down payment requirements, stricter debt-to-income ratios, and mandatory board approval processes that can reject buyers for financial reasons. This makes co-op financing more complex than condo financing.
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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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