Small co-op buildings face uphill battle for financing

TRD New York /
Nov.November 30, 2012 10:00 AM

It’s hard for many people to get financing to purchase a home these days, but harder still for residents of small co-op buildings, the New York Times reported. Small co-ops are now trying to convert to condominium, as buyers in these buildings are finding their options increasingly limited.

Buyers in small co-ops often have to put down as much as 40 percent in a down payment, and work with lenders, such as JPMorgan Chase or Bank of America, which will consider loans for co-ops under 10 units, unlike many other banks, the Times said.

“There are a lot of banks out there that will not make the loan in a building with fewer than 10 apartments,” Aaron Shmulewitz, of law firm Belkin Burden Wenig & Goldman, told the Times. “The market for co-op apartments in very small buildings is pretty much reduced to individuals paying cash or individuals who have strong relationships with their personal bankers.” [NYT] –Guelda Voien


Related Articles

arrow_forward_ios
JPMorgan Chase CEO Jamie Dimon (Getty, iStock)

JPMorgan wants to invest $700M building rentals in Sun Belt states

JPMorgan wants to invest $700M building rentals in Sun Belt states
Companies are relying on surveys and other data points to determine who will come back to offices first. (iStock)

How do companies decide who should return to offices first? It’s tricky

How do companies decide who should return to offices first? It’s tricky
Deutsche Bank CEO Christian Sewing and Deutsche Bank's Manhattan headquarters at 60 Wall Street (Getty)

Deutsche Bank: Employees can stay home until mid-2021

Deutsche Bank: Employees can stay home until mid-2021
Jamie Dimon and 383 Madison Avenue (Getty, Google Maps)

JPMorgan suffers setback in return to office

JPMorgan suffers setback in return to office
Acting US Attorney for Eastern District of New York Seth DuCharme and Bank of America CEO Brian Moynihan (Getty, Twitter, iStock)

Bank of America will pay $300K to settle DOJ mortgage lending discrimination claim

Bank of America will pay $300K to settle DOJ mortgage lending discrimination claim
JPMorgan Chase CEO Jamie DImon and 410 Madison Avenue (Getty Images, Google Maps)

JPMorgan Chase closes on $115M buy of Bank of China’s former HQ

JPMorgan Chase closes on $115M buy of Bank of China’s former HQ
JPMorgan Chase's Jamie Dimon and Fortress Investment Group's Wes Edens (Dimon via Mark Wilson/Getty Images; Edens via Scott Olson/Getty Images)

JPMorgan, Fortress are the latest firms to build up war chests

JPMorgan, Fortress are the latest firms to build up war chests
American Homes 4 Rent CEO David Singelyn and  JPMorgan CEO Jamie Dimon (Credit: Singelyn via Cal Poly Pomona; Dimon via Alex Wroblewski/Getty Images)

JPMorgan showers single-family rental partnership with cash

JPMorgan showers single-family rental partnership with cash
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...