Robert Martinez is a mortgage broker in New York working with a client who wants to purchase a co-op apartment. The client asks about government-backed loan options. What should Robert explain about FHA and VA loans for co-op purchases in New York?
Correct Answer
A) FHA and VA loans are available but require special co-op certification and have limited availability
While FHA and VA loans face challenges with co-ops due to personal property issues, some co-op projects can qualify for FHA approval through special certification processes. However, availability is limited and many co-ops don't meet the requirements, making conventional financing more common.
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