Co-op Board Package
A: Here is the top page of a board package for a co-op in the UES where a list of items to be included are shown. Most of the questions Im hearing lately are about co-op board packages and if they could pass them. The problem is that every co-op board is different just like every private corporation is different; so you MUST contact the managing agent of the building you are buying into (seller broker normally does this prior to showing the property and meeting buyers) and find out exactly 'what they are looking for' to pass the board.
QUICK TIPS
1. Keep your debt/income ratio under 30%; with a grace range of 3-5% above that before raising a red flag. If yours is above 35% then be sure to ask the managing agent if the board will be OK with it.
2. Make sure you have at least 1 years maintenance + mortgage expense in liquid assets AFTER closing costs. Closing costs will include your down payment + transaction fees. Co-op boards that require more than 25% down probably will require more liquid assets AFTER CLOSING too!
3. Start collecting the most recent hard copies for ALL assets that you will be declaring. When you fill out the financial analysis form in the board package, use the EXACT #'s that each hard copy shows and then hand in that copy with the package (you want ALL assets listed to have the exact hard copy backing it up to show the board; mistakes raise red flags!).
4. Focus on Reference Letters. Get at least 4 paragraphs from your friends and be sure all contact information is given (you dont want to hand in a reference letter that no one can call to check up on).
5. Get a Gift Letter from your accountant if you received a large deposit from a family member to 'beef up' your financials for the board. If the hard copy shows the deposit, then you better supply the gift letter to back it up; it only helps.
NOTE: This co-op board doesn't ask for PAY STUBS which is usually common for a co-op board package to ask for. So, be sure to save yours just in case you'll need them.
SAMPLE CO-OP BOARD PACKAGE
*If you have any more specific questions about passing a co-op board, talk to me while I'm online for the LIVE CHAT.
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Comments (4)
I am submitting a co-op board application right now and am confused about a request to include 2 "financial/business references" in addition to the personal one. Is that just a letter from my bank? Would they normally do that? And where would I get the second letter from if I just have one banking relationship? It would be great if you could help.
Thanks,
-Jim
Posted by Jim | November 4, 2006 9:41 AM
Jim,
Yes, you will need to get a bank letter that states how long you had an account open, your account being in good standing and your current balance. They will give this to you at customer service on a bank letterhead.
For business references, get 2 of your co-workers, or 1 co-worker and 1 of your bosses to write you a reference letter stating your work ethic, time with them, etc., again on company letterhead. It should be about 3 paragraphs long with contact info.
Its worth the extra time needed to submit a full and complete package.
Posted by noah | November 4, 2006 10:04 AM
what kinds of coop board package requirements are there for retired folks who do not have a co-worker or boss to provide a reference letter?
Posted by marcia | February 16, 2007 9:36 AM
My daughter is preparing her board package - She is a recent college graduate - with a work starting date in August with a large accounting firm- she has two personal reference letters. She has not been able to contact either of her superiors at her last intern assignment (at the company she will work for in August) - may she submit copies of her reviews she received while interning - they are from all management personnel she worked under.
Posted by Chris M\ | July 5, 2007 3:30 PM