Mortgage question

I have a question about a co-op mortgage. Has anyone ever heard about a flip tax on a co-op affecting your mortgage? I have been hearing from a few sources that for example if you put 10% down but there's a 5% flip tax at the building that they factor that in and you are therefore actually borrowing 95% instead of 90% with your 10% down? Hope that makes sense. Has anyone had any experience w/ this? TIA

Re: Mortgage question

Wow, 41 views and no replies...did I stump everyone?

Re: Mortgage question

you stumped me. i have a co-op, but i never heard of that.

Re: Mortgage question

I have heard of the flip tax but I was never 100 percent positive what it was. It kinda deterred me away from buying it. I always thought it was what you paid the coop association at the end when you sell!

Re: Mortgage question

I believe this is true. My friend just went through this with her co-op. She had to pay the co-op to sell it. I am not sure what the percentage was though.

Message edited 5/21/2007 6:14:27 AM.

Re: Mortgage question

Unless you negotiate otherwise, the flip tax is the responsibility of the seller. If this is the case, then it does not affect your mortgage.