Does a co-op apartment require a higher down payment than a condo or a single-family home?
Yes and no. Some cooperatives do set a minimum down payment amount for those choosing to live in their community. Normally, it is a higher-income cooperative that require a substantial equity investment up front to ensure a prospective member is committed to and contributes to the future reserve fund to pay for capital improvement projects. For most housing cooperatives, prospective members can borrow up to 95% of the value of the apartment. And, special programs exist for limited-equity cooperatives whereby the entire downpayment or “subscription fee” may be covered. Return to Top How does ‘cash out’ refinancing work? “Cash out” refinancing is similar to financing your co-op apartment purchase. An applicant must complete a share loan application, receive pre-approval on you and the property, and follow the traditional underwriting process. New appraisals will be ordered on the apartment. Closing costs can be built into the refinance. The process takes approximately 30 days to complete
