Most co-ops require a hefty down payment, often 10–20% and sometimes more. The rules for subletting your co-op can be quite restrictive, if allowed at all. So they're not a good option if you're planning to move in the near future or are purchasing to rent.   Few lenders provide co-op loans, so opportunities to shop for great terms or rates are limited. You're financially linked to your neighbors. If they default on their financial obligations to the co-op, the building could default and you'd be on the hook.