GEORGIA CO-OP MORTGAGE LENDERS

GEORGIA CO-OP MORTGAGE LENDERS LOAN TO VALUE

GEORGIA CO-OP MORTGAGE LENDERS TERMS
The ARM is a 1st mortgage adjustable rate loan with principal and interest payments amortized over 30 years.

• 3/1 ARM: Rate is fixed for 3 years.
• 5/1 ARM: Rate is fixed for 5 years.
• 7/1 ARM: Rate is fixed for 7 years.
  
• 30 Year fixed for 30 years.

GEORGIA CO-OP MINIMUM & MAX LOAN AMOUNTS
• $100,000 minimum loan amount. Exceptions considered on a case-by-case.
• Co0OP Loan amount exceptions over $4,000,000 available.

GEORGIA CO-OP MORTGAGE LENDERS CREDIT REQUIREMENTS
• 680 middle score required with some exceptions allowed for lack of credit or unestablished credit.
• For co-co-op mortgage applicants and co-mortgagers, the lowest mid-score is used for pricing and qualification.
• Meeting the minimum credit score requirement does not automatically constitute a credit approval. A pattern of
adverse credit or overextended credit may disqualify co-op mortgage applicant from financing, even if the minimum credit score is met.
• Credit report is used for Pre-Approval and co-op mortgage lenders will also pull credit before issuing a conditional
approval. Mid-score from co-op mortgage lenders credit pull is used for pricing and qualification.
No Credit or Limited Credit
• No credit or limited credit profiles are allowed on a case-by-case basis for U.S. citizens.
• No U.S. credit or credit score is required for the Work Visa/Expatriate/Immigrant Program or Foreign National Program
GEORGIA CO-OP MORTGAGE LENDERS OPTIONS INCLUDE:

• Primary GEORGIA Co-op Mortgage Lenders
• Second Home GEORGIA Co-op Mortgage Lenders
• Investments GEORGIA Co-op Mortgage Lenders
• Cash Out GEORGIA Co-op Refinancing
• Second GEORGIA Co-op Home Financing
• Jumbo GEORGIA Co-op Loans
• Low GEORGIA Co-op Closing Costs
• Up to 80 Percent GEORGIA Co-op Mortgage Loans

GEORGIA CO-OP MORTGAGE MAXIMUM DEBT TO INCOME
Maximum GEORGIA CO-op Mortgage Lenders Debt To Income Ratio 
• 43% maximum back-end ratio.

GEORGIA CO-OP MORTGAGE LENDERS APPROVAL PROCESS

2. PRINT OUT CONDO QUESTIONNAIRE FOR ASSOCIATION TO FILL OUT COMPLETE.  the questionnaire must be 100% complete for Approval Commitment. No blanks or questions answered “n/a” 
or “unknown,” and the questionnaire must pass underwriter review.

ELIGIBLE GEORGIA CO-OP PROPERTY TYPES & OCCUPANCY
GEORGIA Co-op Occupancy Permitted
• Primary GEORGIA Co-op Residence
• Second GEORGIA Co-op Home (minimal rental income allowed)
• Investment GEORGIA Co-op Property (non-owner GEORGIA Co-op occupied) permitted at maximum GEORGIA Co-op loan of 60% LTV
ELIGIBLE GEORGIA CO-OP MORTGAGE REQUIREMENTS
• Minimum Down Payment 20% For GEORGIA Co-op Mortgage Lenders
• Title Insurance for GEORGIA Co-ops title policy issued through a title company or closing attorney must be issued on GEORGIA Co-op certificate
• Leaseholds GEORGIA Co-op allowed on a case-by-case basis
BAD CREDIT GEORGIA CO-OP MORTGAGE LENDERS CREDIT REQUIREMENTS
• Late payments on any mortgage, installment or revolving account of 2×30, 1×60 or more will typically disqualify a
borrower from financing. Exceptions will be reviewed on a case-by-case basis at a lower LTV.
• A pattern of adverse credit or overextended credit may disqualify borrower from financing, even if minimum credit score
is met. Borrowers with 3x monthly income amount in unsecured consumer debt are generally disqualified.
GEORGIA CO-OP MORTGAGE LENDERS REQUIREMENTS AFTER FORECLOSURE, BANKRUPTCY, SHORT SALE
• (4)Four-year seasoning from BK discharge date or sale of property
• Maximum 60% LTV or 40% downpayment
• No derogatory credit allowed since the bad credit event
• Strong extenuating circumstance and signed letter of explanation from co-op mortgage applicant detailing event required.
NOT ALLOWABLE FOR GEORGIA CO-OP MORTGAGE LENDERS
– Structural GEORGIA Co-op deficiencies and certain pending litigation (please contact your AE if litigation is not related to a structural issue)
– Incomplete GEORGIA Co-op construction of the subject phase
APPROVED OR ALLOWED GEORGIA CO-OP MORTGAGE LENDERS CASE BY CASE: 
– Low GEORGIA Co-op HOA budget reserves
– HOA GEORGIA Co-op delinquencies exceeding 15%
•  GEORGIA Co-op mortgage lenders  Questionnaire must be 100% complete for Approval Commitment. No blanks or questions answered “n/a” or “unknown,” and the GEORGIA Co-op questionnaire must pass underwriter review.
• GEORGIA Co-ops mortgage lenders price GEORGIA Co-ops the same as Non-Warrantable Condos, regardless of loan size or GEORGIA Co-op questionnaire findings.
• GEORGIA Co-op must pust have a full kitchen and at least one separate bedroom. Minimum GEORGIA Co-op size 500 square feet generally required. Efficiency GEORGIA Co-ops or studio units are not permitted.
• Coinsurance GEORGIA Co-op is considered case-by-case if no agreed amount endorsement is available.

SELF EMPLOYED GEORGIA CO-OP MORTGAGE LENDERS
Self-Employed co-op mortgage Income calculations
• Borrower should be self-employed in the U.S. for a minimum of 2 years (max 80% LTV).
• 2-years business & personal tax returns required, plus year-to-date Profit & Loss statement.
• Business tax returns required for all businesses in which the borrower has 25% ownership or more. On occasion
business tax returns are needed if the borrower is has less than 25% ownership.
• Fannie Mae cash flow analysis form can be used.
• NOL Carryover Loss: Treated case-by-case when truly a one-time occurrence (i.e. real estate loss, lawsuit settlement or some other form of a truly one-time occurrence). Detailed CPA letter addressing the one-time occurrence is required.
• Less than two years self-employment is considered on a case-by-case basis with a reduced LTV.
REQUIRED BY GEORGIA CO-OP MORTGAGE LENDERS
• 2-months bank statements for monthly asset accounts, and most recent statement for quarterly asset accounts
(VOD not permitted).
• 6 months PITI for all GEORGIA co-op properties owned including subject.
• At least 3 months of the subject property’s reserves must be liquid non-retirement.
GEORGIA CO-OP MORTGAGE LENDERS CASE BY CASE MORTGAGE APPROVALS
• GEORGIA Co-op Current reserve balance meets or exceeds 2 months of the subject property’s GEORGIA Co-op HOA dues in reserves multiplied by all GEORGIA Co-op units in the GEORGIA Co-op project or 10% or more reserve allocation designated in the most recent GEORGIA Co-op budget.
SECOND HOME GEORGIA CO-OP MORTGAGE LENDERS
• GEORGIA Co-op Mortgage Lenders will typically define a property as a second GEORGIA Co-op home if it is (1) located in a vacation or resort area 30 or more miles from the primary GEORGIA Co-op residence or (2) used a GEORGIA Co-op college housing for enrolled dependent within 5 miles of campus)
• Short-term GEORGIA Co-op rental income is allowed on second GEORGIA Co-op homes and generally does not constitute a GEORGIA Co-op investment property designation. GEORGIA Co-op Rental income cannot be used to qualify. An evaluation of the 1040 Schedule E is required.
GEORGIA CO-OP MORTGAGE FOR INVESTMENT PROPERTY 
• Property titled in LLC allowed 
• Maximum GEORGIA Co-op 60% LTV for investor GEORGIA Co-op mortgage lenders.
• Gross rental income is calculated by using a 12 month average of the net Schedule E income (Line 21) plus depreciation, mortgage interest paid to banks, taxes and insurance, and GEORGIA Co-op HOA dues.
• Rental income not appearing on Schedule E may be considered case-by-case with 3 months canceled checks and a
current lease agreement. Use 75% of gross rent as gross rental income.
• Immediate GEORGIA Co-op rental income on the purchase of an investment property is allowed using 75% of the monthly rent schedule as documented by Form 1007 or 1025.
• Cash-out is allowed up to $3,000,000 with no seasoning required.
WHAT IS A GEORGIA CO-OP AND HOW DO I GET A GEORGIA MORTGAGE?
A GEORGIA Co-op or cooperative apartment is an individual living unit within a GEORGIA Co-op building or development where a buyer purchases shares (equal to the value of the unit) in a GEORGIA Co-op corporation that holds title to a building   Coops are predominantly located.  Normally a GEORGIA Co-op sponsor will buy the building (takes out the underlying GEORGIA Co-op mortgage) and then will sell off the shares.  Therefore, when buying a coop, you are actually buying GEORGIA Co-op shares in a corporation, not buying real property.
HOW TO GEORGIA CO-OP BUILDINGS GET PRE QUALIFIED BY GEORGIA MORTGAGE LENDERS?
To start with GEORGIA Co-op lender will look at the following factors to see if a particular GEORGIA Co-op building corresponds with their guidelines:  the GEORGIA Co-op property’s resale value, investor concentration, and GEORGIA Co-op owner occupancy.  Based on the previous example, if there are 20 units, five sponsor rentals and 15 sold units (with 12 owner-occupied units and 3 units being rented by the GEORGIA Co-op owners), the following ratios and guideline percentages result:
HOW IS A GEORGIA CO OP DIFFERENT FROM A HOUSE OR CONDO?
When you get a mortgage to purchase a  house or condo you get the deed. But not with a GEORGIA Co-op, individual units do not have individual deeds. A GEORGIA Co-op mortgage is actually a “share-loan” or a loan that purchases a share within in the GEORGIA Co-op. The difference makes securing a loan for a GEORGIA Co-op more complicated them getting a traditional mortgage and fewer mortgage lenders offer share loans.
GEORGIA COOP BOARDS AND APPROVAL RULES
To buy into a GEORGIA Co-op, you must be approved by the GEORGIA Co-op board. The approval process is often extensive and may require interviews and character references, in addition to your employment, financial, and credit history. GEORGIA Co-op boards can refuse a prospective buyer for any reason, so long as it doesn’t run afoul of anti-discrimination policies. What you can do WITH your GEORGIA Co-op unit. As a GEORGIA Co-op shareholder, you don’t have the right of alienation where basically, you can’t sell your GEORGIA Co-op share (or rent your GEORGIA Co-op unit) without the permission of the GEORGIA Co-op board. Some GEORGIA Co-op associations have the right of first refusal, meaning they have the option to buy the property before you offer your GEORGIA Co-op to outside buyers. GEORGIA Co-op boards, though, can simply deny a sale without matching the sale price.

HOW GEORGIA COOP OWNERSHIP DIFFERS FROM CONDO OWNERSHIP
When you purchase a condominium you are purchasing a specific unit the surface and the interior walls of the unit in the space the condo contains. With a Co-op, you are purchasing a share in a corporation, which then entitles you to a unit. This share is considered personal property rather than real estate. 

 Co-Op Resources

• Buying into a Housing Cooperative
• Lessons for Success
• Resident Retention
• Starting a new Cooperative
• Benefits to Continuing as a Cooperative
• Pros  & Cons to Owning a Cooperative
• What is a GEORGIA housing cooperative?
• What do I actually own?
• What does the share or membership purchase price involve?
• Do I pay real estate taxes?
• Are cooperatives allowed to discriminate?
• What do cooperatives look like?
• How to find a cooperative?
• What questions should I ask before buying into a cooperative?
• Economic Advantages
• Social Advantages
• Physical Benefits
• Standard Cooperative Practices
• What is a share loan?
• How do I accumulate equity?
• Market-rate housing cooperatives
• Limited-equity housing cooperatives
• Leasing cooperatives (or zero-equity)
• What are the monthly charges for?