Condo & Co-Op Program
Condo & Co-op Mortgage Programs
Financing Designed for Urban Living Buying a condo or co-op can be one of the best ways to own property in high-demand areas like New York City and New Jersey. However, these property types come with unique financing rules and that’s where having the right mortgage expert makes all the difference.
Condominium (Condo) Financing
A condo is real property, meaning you own your individual unit and share ownership of common areas (like the lobby, pool, or gym) through a homeowners association (HOA).
- Down Payment: As low as 3%–5% for primary residences (Conventional, FHA, or VA programs may apply. Must be on approval list.
Loan Types:
- Conventional, Jumbo and Non-QM programs available.
- FHA and VA must be on approval list.
- Warrantable vs. Non-Warrantable: Warrantable condos meet Fannie Mae/Freddie Mac guidelines and qualify for standard financing.
Non-warrantable condos (e.g., investor-heavy buildings or litigation) may require portfolio or non-QM loan options.
Appraisal Review: The lender reviews the condo project’s financial health, insurance, and occupancy ratio before approval. HOA Dues: Included in your qualifying debt-to-income ratio (DTI).
Cooperative (Co-op) Financing
A co-op is different from a condo, instead of owning real property, you own shares in a corporation that owns the building. Your “ownership” comes with a proprietary lease that gives you the right to occupy your unit.
- Loan is secured by your shares rather than a deed to real property.
- Down Payment: Typically 10%–20% depending on the co-op board’s requirements and the lender’s program.
- Board Approval: Every co-op transaction must be approved by the board, which reviews your financials, debt, and overall profile.
- Owner- Occupancy: Most co-ops require primary residence occupancy (some allow pieds-à-terre or subletting with restrictions).
- Closing Process: Slightly longer than condos due to board interviews and approval timelines.
- Benefits: Often lower purchase prices compared to condos in the same area. Strong building management and community standards. Financing programs available for both purchase and refinance.
Program Options Available For Condos & Co-ops:
- Conventional Loans (Fannie Mae/Freddie Mac)
- Jumbo Loans for high-value units
- Portfolio & Non-QM Loans for non-warrantable condos or unique borrower profiles
- Co-op Financing Programs through specialized lenders Cash-Out Refinance Options for shareholders or owners seeking to leverage equity