What is the difference between a condo and a co-op and which is better?
Laura, another difference between condos and co-ops in NY is the closing costs. Because you are buying shares in a corporation, there is only a lien search done, and a UCC1 form is filed. The total cost of that is under $500. When you buy a condo, your municipal searches alone are often over $500, then you have title insurance, which is based on the purchase price and the loan amount, the mortgage tax is 1.8% of your loan amount. If you are taking out a mortgage, you can get a great rate with 20% down. On a condo, with 20% down, Fannie Mae and Freddie Mac have an over-lay to rate, which makes it more costly. The most important thing to figure out, if you are planning to finance, is what you can afford, and if it is likely that you will be approved by the co-op board. There are times when we can get people approved for a mortgage easily, but their debt ratio is too high for the co-op board. Figuring all this out is like getting yourself through a maze. If you would like help in navigati
