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Would I pass a Co-op Board?
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Post Would I pass a Co-op Board? 
I suspect I will have issues passing a Co-op board, but I would like to hear opinions from people who may have more experience. Two issues -

1) My parents will be providing the downpayment. I am not sure exactly how
a) have them provide the downpayment to me directly, then I get a loan. Not yet sure what the tax implications of doing it this way are.
b) have them buy the apartment, and I pay them rent.

Is either way better? I can afford the mortgage + maintenance for an apartment for something around 250 -300K. I work in the public sector, not a huge salary, but still got student loans - it would be many years before I could save up 50K to 60K.

Just to mention, I have struggled with this idea - I don't feel completely comfortable with them providing me this assistance. But this is something they want to do, renting is a waste in their opinion and they figure I will be the beneficiary sooner or later, so why not sooner?

2) By the time I ready to buy I will be recently divorced, and will be moving in with my new fiance. May or may not be re-married by the time we are ready to buy.

I am a renter, never had to deal with a Co-op board, but am I right that I would be more likely to be rejected? Would I even get that far? Or would broker not accept an offer knowing these things?

I have not seen any condos for sale in my price range, so I kinda ruled that out. But what about apts for sale by sponsor? Would any of the above matter?

Thanks for any advice.

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IF the coop is in your parents' name i don't see any problems assuming their financials are good. Just have them meet with the board also along with you i dont' see much problems. but i don't know how much downpayment you are putting. the higher the better.

but in general people say it's better to rent than to buy coop just cause maintenance fees and all , in the end you saved up more money by renting... and then can afford a house or condo. just thinking out loud. which coop board if you have one in mind?

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Post co'op approval 
you won't get approved if your parents are putting down the downpayment...they are most likely looking for you to be financially good enough to live in their community.
if your parents purchase the apt you still couldn't live there w/out them. you would have to sub-lease and most likely have to go in front of the board to be approved either way.

bottom line is if you can't do it yourself then don't. rent is only a waste if you can afford to buy...if not then its a means to a place to live

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Getting Approved by a Co-op Board is a stressful and intrusive process and varies greatly form one board to the next. First you should know a little about the board and the building and what the rules are. If they do not allow subletting, allowing your parents to buy the place and rent it to you probably won't work. I would suggest getting a copy of the Board application and see how complex it really is. Most co-op boards allow for "gifts" from parent or others to help with the down payment. There are tax implications for the person giving the gift however so you might want to check with a tax advisers. As a board member in my co-op, we care about two things, can you afford the apartment and meet any potential assessments and will you "contribute' to the overall co-op community. Owning is usually better as it allows you to build equity and tax advantage of some tax deductions which are not available to you when you rent. Over the long haul real estate will rise in value on average about 5% per year, yes there will be periods of decline and other periods of high price appreciation, but generally you can use a 5% rate of growth if you do the analysis over say a 7 to 10 year period. Last, you should get pre-approved for a mortgage so you know what you can afford. A quick rule of thumb is to take your monthly GROSS income and multiply it by 25% to 30%. This will give you a fairly conservative monthly budget for Mortgage Payment (Principal & Interest), Maintenance, (or Common Charge and Taxes in a condo) and Home Owners Insurance.

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Post Co-op Boad Approval 
As a real estate attorney, I would agree with much of what Guest had posted on June 12, 2008. Unless the Board allows subletting, you must buy the apt. in your name. Gifts are usually allowed by most co-ops but you should inquire about the one in which you are interested. Boards will require a paper trail showing the funds withdrawn from your parent's account and the deposit into your account. If they feel your income is marginal, they might consider either a guarantor (one whose income supplements yours and will be legally liable for payments of maintenance should you not pay) or a sum of money held in escrow escrow for a year or two. Good luck.

clsgman@aol.com

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