Co-Purchasing a Co-op vs Using a Guarantor in NYC

Both co-purchasing a co-op and utilizing a guarantor when buying a co-op are viable options for a buyer who has shaky finances that the co-op board might not otherwise approve of individually. It’s important to understand that co-purchasers share joint responsibility for all loan, monthly maintenance and special assessment payments, while a guarantor is only responsible for backstopping the buyer’s monthly maintenance charges.

What Does Co-Purchasing a Co-op Mean?

Co-purchasing a co-op means two two or more people are jointly purchasing a co-op apartment together. If two people are co-purchasing a co-op, then both buyers’ names will be on the co-op stock certificate as well as the co-op proprietary lease.

Advice for Co Buying a House (2020) | Hauseit®

Buying a Co-op with a Guarantor

Buying a co-op with a guarantor simply means you will be purchasing the apartment on your own, but you will have guarantor for your monthly maintenance payments.

What is Conditional Coop Board Approval in NYC? (2020) | Hauseit®

Co Purchase vs Guarantor

When to have a guarantor vs a co-purchaser

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Do All Co-ops Allow Guarantors?

No, not all co-ops allow guarantors, co-purchasing or even gifting. Each co-op is allowed to make up its own set of rules and financial requirements. As a result, you should not proceed with buying a coop in NYC with the assumption that you will be allowed to utilize a guarantor if you are on the cusp financially.

What Are the Typical NYC Co-op Financial Requirements? Buying a Co-op Apartment in NYC (2020)

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