This situation comes up every once in a while…where a co-op is not 51% owner occupied. Which means it is unlikely to obtain financing. Some cases the original sponsor owns most of the units and they are still being rented. This is a risk situation for a bank and therefore baNKS tend to shy away from this scenario.
In the event you are shopping for a co-op be sure to ask these questions to the listing agent and tell them straight up – you rather know now than waste anyones time.
How many units in the building are owner occupied ?
How many are sponsor owned ?
How many total ?
and How many rented ?
These numbers will facilitate your financial institutions process and determine lending eligibility…making on offer with financing on a property that can not be financed is a sure waste of time !
So, if you love those 3/4 unit co-ops it is more important that they are all owner occupied for a speedy banking process and one that will deliver a commitment letter…
Be sure that you check this out before you waste your time, most co-ops that are not 51% owner occupied will require CASH only or depending on the percentage , a 50% or greater down payment..
So buyer beware and make sure you consult with a professional…
Email me, anytime with any questions on the buying or selling side of any transaction ..
I’m just a click away !
AskImma 
Leave a comment