Cooperative Housing Loans

Financing options for properties in which the residents collectively own the building and property through their shares in a cooperative corporation.


Flexible loan terms
Competitive pricing
Certainty and speed of execution
Customized solutions


5 to 30 years


Up to 30 years

Interest rate



Existing stabilized cooperative properties in eligible cooperative property markets

Cooperative corporations with strong management and solid operating history

Limited equity cooperative properties for low- and moderate-income families are also eligible

Overall Property condition rating of two or better

Maximum LTV

55% (on a market rental basis)

Minimum DSCR

1.0x on actual underwritten operations; 1.55x when utilizing market rate rentals.

Property considerations

The property management company is required to have experience with cooperative properties of like size and market.

Reserve balance must be equal to or greater than 10% of annual maintenance fees.

Maintenance fees must be sufficient to achieve a balanced budget.

High levels of ownership by one sponsor or investor (in excess of 40%) will require additional due diligence.

Supplemental financing

Supplemental Loans are available.

Prepayment availability

Loans may be voluntarily prepaid upon payment of yield maintenance.

Rate lock

30- to 180-day commitments. Borrowers may lock a rate with the Streamlined Rate Lock option.


Non-recourse execution is available with standard carve-outs for “bad acts,” such as fraud and bankruptcy.


Replacement reserve, tax, and insurance escrows are typically required.

Third-party reports

Standard third-party reports required, including Appraisal, Phase I Environmental Site Assessment and Property Condition Assessment.


Loans are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience.