When you buy a co-operative unit, you’ll be getting a loan to buy the shares and a proprietary lease to live in the co-op unit. For this reason some banks don’t like to lend on co-op purchases, so you’ll need to seek a lender who is familiar with these unique buying situations. The short of it however is that you shouldn’t be afraid to purchase one.
Cooperatives have board which functions much like a Condominium Homeowners Association. They will require an interview with the potential buyer to ensure they are in agreement with the theme of members in standing. As an example, artists or thespians. They may also ask to see financial information to ensure you’re able to support your mortgage. If you default, the liability falls to the remaining members. Be sure to have a clear understanding regarding pets, long and short term rentals before you decide to buy in to this unique but not terribly uncommon arrangement.