Understanding Co-op Home Loans

kg coop refinanceComparing Co-ops and Traditional Mortgages

It is no secret that cooperative mortgages, known as co-ops, are far different than traditional mortgages. Commonly referred to as a “share loan”, co-ops are not individual loans for the right to own a property, but the loans give you the right to own a share in the co-op. Since co-ops work in a different way than traditional mortgages, a limited number of lenders offer “share loans”, and if you wish to refinance your loan, it can get even trickier.

• If you are in the market to refinance your co-op mortgage, talk to MortgageDepot, Kew Gardens located mortgage professionals and allow them to guide you through the complications of a cooperative mortgage.

Defining a Cooperative

The actual term cooperative refers to a group, usually a corporation, which owns real estate. Most cooperatives own apartment buildings or similar real estate with multiple units. Therefore, when you buy a share of the cooperative, you receive a proprietary lease on an individual unit that gives certain “right to own” benefits. You must go through a co-op board who either approves or denies your application to own a share.

• As you can see, the process is far different than traditional mortgages, which is why you need experts if you wish to refinance your cooperative mortgage.

Why Choose MortgageDepot for Your Coop Refinance

Due to the complexity of cooperative mortgages, you need professionals who understand how the process works. Only a professional can deliver you the lowest rate and terms on your coop refinance, and our team is fully equipped with experts who know everything about co-op mortgages. Here is what MortgageDepot can do for you:

• The minimum credit score to qualify is now 660.

• The maximum debt-to-income ratio is 45 percent on primary and second home occupancy.

• The loan-to-value on a rate and term refinance is 90 percent on primary and second home occupancy.

• The loan-to-value on a cash out refinance is 80 percent.

• The loan-to-value on a high-balance residence with a 720 credit score is 90 percent. 75 percent with a 680 credit score.

• A cash out refinance with a high-balance on a primary residence with a 740 credit score is 60 percent.

• A $350 appraisal fee on a cooperative mortgage is one of the lowest in the industry.

Find out why the MortgageDepot is the premier mortgage company that specializes in cooperative mortgages. With years of experience, your journey to a cooperative mortgage that works for you stops at your fingertips.

Click here for their Approved Coop Buildings list.

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