A buyer in Rochester is pre-approved for a conventional mortgage and wants to purchase a co-op apartment. What should the buyer's agent explain about financing a co-op purchase in New York?
Correct Answer
D) Co-op financing requires specialized share loans rather than traditional mortgages
Co-op purchases require share loans (also called co-op loans) rather than traditional mortgages because the buyer is purchasing personal property (shares in a corporation) rather than real property. These loans have different underwriting criteria and terms.
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More Valuation Market Analysis Questions
A parcel is in a desirable retail corridor and buyers want it, but an unresolved title defect and missing legal access make it hard to close. Which element of value is most directly impaired?
When appraising co-op apartments in New York, all of the following factors must be considered due to their unique ownership structure EXCEPT:
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- → The best method to determine fair market value is:
- → Who typically hires the appraiser in a real estate transaction?
- → A depth table is used to estimate property value for:
- → Under federal law, which type of loan typically does NOT require a property appraisal?
- → FIRREA (Financial Institutions Reform, Recovery, and Enforcement Act) requires:
- → For appraising a vacant lot for single-family residence construction, which approach applies?
- → The final appraisal step of weighing different approaches is called:
- → For 1930s buildings, the cost approach is least accurate due to:
- → An appraiser valuing a newly built warehouse with no rental history uses the cost approach as the primary valuation method. Why is the cost approach often most relevant for new or special-purpose properties?