We use cookies to improve your experience. By continuing, you agree to our use of cookies.
Apply Now
Ready to start your home buying journey? Apply now and get pre-approved for your mortgage.
Purchase Rates
Know the rates, know your options. Start building your homeownership plan today.
Monthly Mortgage Calculator
Get a clear picture of your monthly mortgage payment using your rate, credit score, and down payment information.
Affordability Calculator
Not sure what fits your budget? This calculator factors in your income, debts, and down payment to help you find the right price range.
Apply Now
Ready to lower your rate or tap into your equity? Apply now and start your refinance journey with confidence.
Refinance Rates
Rates can change fast. See today’s options and discover potential savings on your mortgage.
Refinance Mortgage Calculator
Wondering how refinancing will affect your monthly payments? See how much you can save.
Cash-Out Refinance Calculator
See how much equity you can tap into. Estimate your new mortgage payment and compare loan options.
Calculators
Free, interactive mortgage calculators that can help you along the journey toward your home ownership goals.
Blog
Learn more. Stress less. Our blog breaks down what you need to know to buy, refinance, or plan ahead.
FAQs
Check out our FAQs to learn more about Total Mortgage, mortgage lending, home refinancing, and more.
Loan Programs
Navigate all our programs and find the perfect loan for you.
Buy
Apply Now
Ready to start your home buying journey? Apply now and get pre-approved for your mortgage.
Purchase Rates
Know the rates, know your options. Start building your homeownership plan today.
Monthly Mortgage Calculator
Get a clear picture of your monthly mortgage payment using your rate, credit score, and down payment information.
Affordability Calculator
Not sure what fits your budget? This calculator factors in your income, debts, and down payment to help you find the right price range.
Refinance
Apply Now
Ready to lower your rate or tap into your equity? Apply now and start your refinance journey with confidence.
Refinance Rates
Rates can change fast. See today’s options and discover potential savings on your mortgage.
Refinance Mortgage Calculator
Wondering how refinancing will affect your monthly payments? See how much you can save.
Cash-Out Refinance Calculator
See how much equity you can tap into. Estimate your new mortgage payment and compare loan options.
Rates
Resources
Calculators
Free, interactive mortgage calculators that can help you along the journey toward your home ownership goals.
Blog
Learn more. Stress less. Our blog breaks down what you need to know to buy, refinance, or plan ahead.
FAQs
Check out our FAQs to learn more about Total Mortgage, mortgage lending, home refinancing, and more.
Loan Programs
Navigate all our programs and find the perfect loan for you.
Customers
About
Co-op
<p class="\"\\"MsoNormal\\"\"">Buying a co-op is a little different than buying a house or condo. Luckily, we can help.</p>
Benefits
Tax Deductions
Co-op owners may be eligible for various tax deductions, including mortgage interest and property tax write-offs.
Lower Closing Costs
Co-op loans often have lower closing costs compared to traditional home purchases due to reduced fees and paperwork.
Simpler Approval Process
Co-op financing can have a streamlined approval process due to vested interests of co-op boards and specialized lenders.
Community Living
Co-op living offers a strong sense of community and shared responsibilities among residents.
Co-op Home Loan Information
<p>Co-op home loans are designed for purchasing shares in a cooperative housing unit. These loans differ from traditional mortgages in several ways. To better understand how co-op financing can fit into your homeownership plans, you can start by <a href="/apply">speaking to one of our seasoned experts</a>.</p>
Understanding Co-ops
<p>In a co-op housing arrangement:</p><ul><li>A corporation or management company owns the residential building</li><li>Homebuyers purchase shares in this corporation rather than individual units</li><li>Shareholders collectively share responsibility for property maintenance and upkeep</li><li>Owners pay monthly fees for maintenance, insurance, property taxes, and other expenses</li></ul>
Co-op Financing Requirements
<p>Key points to remember:</p><ul><li>Strong relationship with the co-op board is crucial</li><li>Higher credit score requirements (often minimum FICO of 680)</li><li>Debt-to-income ratio impacts loan approvals</li><li>Detailed financial documentation required</li><li>Liquid asset requirements may apply</li><li>Working with specialized lenders is recommended</li></ul>
Types of Co-op Financing
<ul><li><strong>Fixed-Rate Mortgages:</strong> Consistent interest rate and predictable monthly payments</li><li><strong>Adjustable Rate Mortgages:</strong> Interest rate fluctuates based on market conditions</li><li><strong>Jumbo Mortgages:</strong> For units above specified price thresholds</li><li><strong>Conventional Loans:</strong> Flexible options with choice between ARMs and fixed-rate mortgages</li></ul>
Pros and Cons of Co-op Financing
<p>Understanding the advantages and disadvantages of co-op financing can help you make an informed decision.</p>
Additional Pros
<ul><li>Potential for various tax deductions</li><li>Lower closing costs compared to traditional home purchases</li><li>Streamlined approval process</li><li>Strong sense of community</li></ul>
Cons to Consider
<ul><li>Higher down payments (typically 20-30%)</li><li>Limited loan availability</li><li>Resale restrictions</li><li>Potential for complex approval processes</li><li>Shared financial responsibilities with other co-op members</li></ul>