ALWAYS IMPORTANT: Three (3) Original (not copies) Recognition Agreements Duly Executed by Lending Institution and Shareholder(s) (AZTECH FORMS ONLY) must be submitted with this package.
Please submit the following information for all financing requests to the closing department at:
Maxwell-Kates, Inc.,
9 East 38th Street - 6th floor
New York, NY 10016
Att: Closings
MAXIMUM FINANCING: UP TO 80% OF THE CURRENT APPRAISED VALUE
Items 1-4 required when refinancing the balance of a present mortgage and there is no increase in the monthly payment, and the principle does not increase. (FOR THIS FINANCING REQUEST PLEASE SUBMIT ONE ORIGINAL AND ONE COPY)
- Copy of the most recent monthly mortgage invoice from current lender.
- Copy of Commitment Letter.
- Copy of Appraisal Report.
- Copy of the payoff letter from the current lender.
You will also need to submit the following information: (items 5 – 9) along with the 4 items listed above when you are applying for first time financing, increasing your mortgage and monthly payment, or requesting a line of equity.
- Statement of Net Worth to be completed with all supporting documents attached.
- Employer Verification Letter stating: Salary, Position and Length of Employment. (If self-employed, a completed set of Income Tax Returns).
- Letter from the bank holding first the mortgage acknowledging their awareness and acceptance of the second loan when obtaining a line of equity.
- Copy of the most recent completed and signed 1040 Income Tax Returns
Fees Due upon submission of above package as follows:
- Processing Fee of $250.00 is due and made payable to Maxwell-Kates, Inc.
Should you have any questions regarding the above, please contact the closing department at 212-684-8282
Board Approval
The Board must give its approval for the financing or refinancing of any apartment.
Amount You May Finance
In 2008, the board voted to increase permissible financing of an apartment to 80% of the purchase price.
Approval Guidelines
In 1997 the board voted that if your new mortgage payment is lower than your old mortgage payment, or your new mortgage loan is not more than your old mortgage loan, the board will generally OK your request. To receive approval, please fax the managing agent the following:
- A statement from your current lender showing your monthly payment and total debt
- A statement from your new lender showing the proposed monthly payment and total debt
However, if any tenant is in violation of any rules of the cooperative, the board will not allow the tenant in violation to finance/refinance an apartment.
Aztech Forms
Aztech forms are another term for the "recognition agreement". This is a contract between a mortgage borrower, the lender for the apartment, and the co-op that requires the co-op to inform the lender if the borrower defaults on his/her obligations to the co-op. The transfer agent has power of attorney to sign Aztech forms, so Aztech forms should be not be given to board members or the managing agent.
Appraisal Forms and Questionnaires
Most lenders require an appraisal form completed by an authority familiar with the building. The Managing Agent charges a fee for these forms to be completed. If your form is filled out and signed by any current board member, there is no charge. Go to the FAQs section of the website for the information required.
Financial Statements Required
Any shareholder who wants to refinance an apartment or purchase another apartment, can avoid submitting financial statements to the board, if he/she either:
- has paid all financial obligations to the co-op on time for the most recent 36 months, or
- has submitted financial statements to the co-op within the most recent 36 months and paid all obligations to the co-op on time during that period
This rule was adopted unanimously because board members felt that further scrutiny under these circumstances is unnecessary.