Is purchasing a co-op possible?

pharmaguy_nyc · Joined: 21 Oct 2007 Posts: 1

I just went to the bank and the branch manager suggested that it would be better for me to buy a place than pay rent. As was wondering if it would be possible for me to get a loan to get such a place...

I am 23 year old, just got my 1st job out of college... the pay is only 34k a year gross not including the overtime that I was told I would be getting.

I am looking for a place in Queens, NY and they prices range from 150k to 225k for what i am looking at.

I have a credit score that 749. I can put about 14k down. The only payments I have are my car and the insurance which is a total about 650 a month. No credit card debt. And about 15k in savings.

Any advice or suggestion or added information that would be need please let me know.. I am not that knowledge in this matter so please understand that...

Thanks.

jrhartman · Joined: 01 Apr 2007 Posts: 107 Location: Michigan

puchasing a co-op through a traditional mortgage lender probably won't happen. If you really want to puchase that property type, I would contact the co-op board and find out who typically does the financing.

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

Monthly Income: $2833

Monthly Debt (assumed): $450 (This is based on what my insurance was on a vehicle when I was your age, and when I was in a larger city.)

2833 * .38% = $1,076.67

That's generally about the most you'd want to spend in monthly outgoing debt.

$1076.67
- $450
-------------
$626.67

That's what you'd have left for taxes and insurance. Don't fall into the trap of the good ol' "$200,000 mortgage for $500!!!" garbage, it's worthless in most cases. With about $625 left in payment, that's really going to get you probably in the $75,000 range, and could be less depending on what taxes are like.

Now, you can always look at using someone as a non-occupant co-borrower (like mom and/or dad) on an FHA program, or on a conventional where you are putting 10% down. You'd then be able to use their income to supplement yours.

The only question at that point would be, would you be able to afford it? I'd say it's a pretty far stretch.

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