What is a Coop or Co-op?
A coop/co-op, which is also known as a cooperative share [ or cooperative housing ], is a multi-family housing complex that is owned by a corporation. Instead of purchasing an individual unit, as would be the case with a traditional condominium complex, you purchase a share of the corporation that owns the building. Therefore, you are essentially a shareholder in the corporation, versus a typical homeowner. With a Co-op, each participant [ or shareholder ] gets to occupy a unit in the housing complex.
Co-ops properties are often treated like second homes and are quickly growing in popularity among Orlando vacationers looking for time share real estate.
Not allowed:
- Structural deficiencies and certain pending litigation
- Incomplete construction of the subject phase
- Homeowners Association with $0 reserves
- Units without a cooktop
- Refinances must have stock certificate
Approved/Evaluated Case-by-Case:
- Low HOA budget reserves – HOA delinquencies exceeding 15%
- Condo Questionnaire must be 100% complete for Approval Commitment. No blanks or questions answered “n/a” or “unknown,” and questionnaire must pass underwriter review.
- Coops with less than 500 square feet allowed at a max 70% LTV