Co-op
Shares in a corporation, not a deed.
Financing for housing cooperatives, where you are purchasing shares and a proprietary lease rather than real property, which most lenders in this region cannot handle.
What makes this loan different
- Share loans for cooperative housing
- Recognition agreements coordinated with the board
- Primary residence and second home options
- Underwriting includes the co-op's finances
Who this is built for
- Buyers in established cooperative buildings
- Senior cooperative communities
- Owners refinancing an existing share loan
A different kind of collateral
In a co-op you own shares in a corporation that owns the building, plus a proprietary lease for your unit. The lender takes a security interest in the shares, not a mortgage on real estate, which is why the loan is structurally different and why many lenders simply decline.
A recognition agreement between the lender, the borrower, and the co-op board governs what happens on default, and obtaining it is often the long pole in the timeline.
The corporation is underwritten too
Underwriting reviews the co-op's underlying mortgage, reserves, maintenance charges, sublet rules, and owner-occupancy. A financially weak corporation can sink an otherwise strong file.
What lenders typically ask for
- The proprietary lease and stock certificate
- The co-op board's application and approval
- Building financial statements and the offering plan
- A recognition agreement between the lender and the cooperative
- Standard borrower income, credit, and asset documentation
Requirements vary by lender and by file. This is a general picture of what is commonly requested, not a checklist for a specific loan.
Worth knowing
Board approval is separate and can decline.
The cooperative's board runs its own process and can reject a purchaser who is fully qualified for financing, often without stating a reason. Loan approval does not secure the apartment.
The borrower owns shares, not real property.
The security is stock and a lease rather than a deed, which is why fewer lenders participate and why the documentation differs so much from a standard mortgage.
Building rules affect future flexibility.
Sublet restrictions, flip taxes on sale, and limits on financing percentage are set by the cooperative and can materially affect what the buyer can do later.
Availability is geographically concentrated.
Co-op lending is common in a handful of markets and scarce elsewhere. Lender options depend heavily on location.
See what this program would take in your case.
We are brokers — this program is shopped across hundreds of wholesale lenders, not quoted off one rate sheet. A short application gives us enough to compare real options.
Program availability, terms, guidelines, and documentation requirements vary by lender and are subject to underwriting and change without notice. This is not a commitment to lend.