Are you wondering what the difference is between a co-op and a condo purchase?
Here are the top 5 differences between co-ops and condos in a concise format:
1. Ownership Structure:
- Co-op: Buy shares in a corporation that owns the building.
- Condo: Own the individual unit outright.
2. Approval Process:
- Co-op: Requires board approval, including financial review and interviews.
- Condo: Typically no board approval, faster and simpler process.
3. Financing and Down Payments:
- Co-op: Larger down payments and stricter financing requirements ( Require: income, credit score, dti, reserves).
- Condo: More mortgage options and lower down payments.
4. Monthly Fees and Maintenance:
- Co-op: Higher monthly fees covering mortgage, taxes, utilities, and maintenance.
- Condo: Lower monthly fees covering shared expenses; separate property taxes.
5. Resale and Subletting:
- Co-op: More restrictions, board approval needed for resale and subletting (Often, no parking, no pets, no sublet).
- Condo: Fewer restrictions, more flexibility for resale and renting.
Call me to discuss your options and together, we can create an action plan to help you find the right fit for your needs.
