Lending Institutions
MORTGAGES AND LOANS
Purchasing a co-op is different than buying a home or condominium. But remember - it is different, not impossible! Just as a financial institution will lend money with a deed as security, certain financial institutions can lend money with a stock certificate as security as well. Since there are not many co-ops in Missouri (2), it's understandable then that most financial institutions don't know the details on how to lend for a co-op, and therefore do not. But it's a simple matter of determining who does lend, and then applying to one of those. Under the current tax law the interest you pay on the loan is deductible, as it would be on a home real estate mortgage.
To encourage lenders the St. Regis will subordinate most of any potential liens it has on a resident's stock certificate to the lien of the lender. The St. Regis does require that the amount of the loan not exceed 80% of the appraised value of the apartment. Checking with your existing institution is usually the best first step, but we can provide the names of some institutions and individuals who have made loans to St. Regis residents. We can even help the institution with suggested paperwork that has been used by other lending sources and can work with them to get documents that satisfy their needs. Qualifying for a loan is, of course, something you must undertake yourself, but the St. Regis board will help with the paperwork part if the institution so desires.
Here is a list of lenders that offer loans on co-ops: (more coming)