Will you loan on coops?

Does Rental Home Financing Offer Loans on Co-ops?

No, co-operative housing (co-ops) are not eligible for financing under our current lending programs. This applies to all co-op structures regardless of location, unit count, or occupancy status. Co-ops are excluded across our entire product line, including blanket loans, single property loans, and multifamily programs.

The reason is structural. In a co-op, the buyer does not receive a deed to real property -- instead, they purchase shares in a corporation that owns the building, along with a proprietary lease granting the right to occupy a specific unit. Because there is no fee-simple real estate ownership, a traditional mortgage lien cannot be placed on the individual unit. Our loans are secured by real property, and the share-based ownership model of co-ops does not fit within that collateral framework.

What Are the Alternatives for Co-op Investors?

If you own co-op units alongside other qualifying rental properties, the co-op units would need to be excluded from any portfolio financed through our programs. However, the rest of your portfolio -- single-family homes, condominiums, townhomes, and multifamily apartment buildings -- can be consolidated into a blanket loan. Some investors hold co-op investments separately under different financing while using our programs for their fee-simple rental properties.

If you are evaluating whether to invest in co-ops versus condominiums or other property types, keep in mind that condos (including non-warrantable condos that do not meet Fannie Mae standards) are fully eligible for our lending programs. Condos provide fee-simple ownership with a recorded deed, making them compatible with our collateral requirements while still offering the multi-unit building format that many investors prefer in urban markets.

Do You Finance Condominiums Instead?

Yes. Condominiums -- including fractional condos and non-warrantable condos -- are eligible property types under all of our loan programs. If you are looking at multi-unit investments in markets where co-ops are common (such as New York City), condo units offer a financeable alternative with similar investment characteristics but a compatible ownership structure. Our team can help you evaluate condo portfolio opportunities and structure the financing accordingly.

See all eligible property types under our residential rental property loan programs.