Financing Rossmoor Cooperatives
Much like qualifying for a mortgage, certain qualifications must be met to purchase a Rossmoor cooperative.
If Buyer pays cash:
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Buyer must have liquid assets of $50,000 to $75,000 (depending on the Mutual) after purchase price, membership fee, and closing costs are deducted from their accounts and ....
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Buyers income must be 3-1/2 or four times their monthly coupon (depnding on the Mutual).
If Buyer Gets a Co-op Loan:
Golden Rain waives their financial requirements.
There are three Mutuals (Homeowners Associations). Here are the current loan parameters:
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Mutual 1 requires a minimum down payment of 30%.
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Mutual 2 requires a minimum down payment of 30%.
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Mutual 8 requires a minimum down payment of 30%.
Coupon Fees: (as of 2011. Dues are subject to change annually.)
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Mutual 1 is $574 + buyers property taxes
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Mutual 2 is $670 + buyers property taxes
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Mutual 8 is $564 + buyers property taxes
Monthly coupon fees include water, garbage, basic cable, exterior building and landscape maintenance, fitness center and use of clubhouse facilities, as well as repair/replacement of water heater, furnace and air conditioning. Property taxes are factored at 1.25% of the purchase price divided by 12 months.
Example:
Purchase price of $150,000.
150,000. X .0125 = $1875. (This is the annual tax bill, divide by 12 to get the monthly amount.)
$1875 divided by 12 = $156.25 per month. Add this number to the Mutual dues and this equals the monthly coupon for your new buyer.