Thomas Martin – Mortgage Loan Originator– 954-667-9110 – Rev 3-13-2025 – Subject to change without notice.
Florida Coop Mortgage Lenders – Refinance Florida Co-op
What is a Co-op?
When you buy into a coop/co-op, you purchase shares in the corporation that owns the property. All residents in the building are shareholders and they all share in the expenses and maintenance of the property. And, when you purchase a co-op you purchase shares of the corporation that owns the building. So in reality you are a shareholder in the corporation, versus a typical homeowner. With a Co-op, each participant is a shareholder and gets to occupy a unit in the condo or housing complex. Co-op properties are often purchased as second homes and are quickly growing in popularity among Florida coop seekers.
Loan Options Include:
- 30-YEAR FIXED
- 3/1 ARM
- 5/1 ARM
- 7/1 ARM
Loan to Value
- 1,500,000 = 80% LTV
- 2,000,000 = 75% LTV
- 2,500,000 = 70% LTV
- 3,000,000 = 65% LTV
- 3,500,000 = 60% LTV
- 4,000,000 = 55% LTV
- 4,500,000= 50% LTV
- 5,000,000= 50% LTV
Co-op Document Checklist
- Questionnaire
- Master Insurance policy,
- Budget
Co-op Pre-Approval Document Checklist:
- Questionnaire
- Master Insurance policy,
- Budget
Co-op
•Title Insurance policy issued through a title company or closing attorney must be issued on the Co-op certificate.
•Borrower paid attorney review of all applicable co-op documents or other pertinent items required prior to funding
•Leaseholds allowed with 30 years or more remaining on lease. Leases with 15 years or more remaining allowed on
investment properties only
Co-op Reserve Requirements:
The current reserve balance meets or exceeds 2 months of the subject property’s HOA dues in reserves multiplied by all units in the project or 10% or more reserve allocation designated in the most recent budget.
Co-op Mortgage Lenders Questions And Answers
Q – Do we approve loans in coop projects that have re-sale, age, income, or any other owner-related restrictions?
A – Florida Coop with any sort of re-sale restrictions presents a severely negative impact on the marketability of the unit in the event the borrower defaults and this becomes an REO. It is important to identify what the restrictions are to determine project warrantability and eligibility:
- If the only restriction is “Right of First Refusal”, this is okay and the project can still be eligible as Warrantable.
- For projects with age restrictions, such as 55-and-older communities, we will allow financing to these projects as long as:
- Borrower meets the age requirements, and;
- The project must not have any rehabilitation, medical treatment, or elder-care facilities (for example, nursing homes).
- The project will only be considered eligible as a Non-Warrantable. If both the above conditions are not met, the loan will be ineligible under all loan programs.
- For projects with income restrictions, such as low-to-moderate income (LMI), we will allow financing to these projects as long as:
- the subject unit is NOT one of the LMI or income-restricted units.
- The project will only be considered eligible as a Non-Warrantable. If the above condition is not met, the loan will be ineligible under all loan programs.
- For all other re-sale or owner-related restrictions not identified above, the loan will be deemed ineligible under all loan programs.
Q –What Cities In Florida Have The Most Coops?
