home equity loan (or credit line) for coop?
Question: >I would like to get a home equity credit (to replace some credit card debt) on my apartment in an 8-unit coop in New York City. The value of the property is $305,000, and my outstanding loan is $244,000. So, my loan to value ratio is 80%. I know for regular houses (or condos) one can easily get home equity credits above 80% (I’m intereted in getting about $30K, so it’d be to 90% LTV total). I have yet to be able to find someone who will give a home equity loan, on a coop, above 75%. I find that strange because, for first mortgages on coops, one can easily find 95% LTV loans.
Anyone has any info on this? If so, I’d appreaciate an email response as well.
Answer: It’s a co-op. Right there, that is different. For those who are not New Yawkers, *unlike* a condo (where you own your individual unit) in a co-op you own shares in the corporation that owns the building, which then leases you your unit (“proprietary lease”). True co-ops are common in NYC and a few other big cities. I do not have a specific answer for this post, only that I am not surprised. Now if it was a condo…. (and there have been times in the NYC market where physically comparable condos went for substantially more $ than the co-op version).
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