Finance
A New York co-op purchase is typically financed differently from a house purchase because:
ACo-op loans are guaranteed by the state
BThe buyer receives shares and a proprietary lease, not real property, so the loan is a share loan, not a mortgage✓ Correct
CCo-ops always require 50% down payment
DNew York banks do not lend on co-ops
Explanation
Because co-op buyers receive shares in a corporation rather than real property, financing is done through a share loan (also called a cooperative loan), secured by the shares and proprietary lease rather than a traditional mortgage.
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