One reason is that at the time of their purchase, home mortgages were cheaper than co-op loans.

I had heard that co-op loans for studios are hard to get now.

The close scrutiny of most co-op loans is not new.

Some lenders have moved the requirement for co-op loans up to 60 or 70 percent owner occupancy.

In the past, co-op loans were typically limited to 80 percent of value.

In general, lenders have tightened underwriting policies for co-op loans.

"Unless a building is sound financially, banks won't approve a co-op loan," she said.

For one thing, it eliminates the fees and red tape associated with obtaining an individual co-op loan from a bank.

Some borrowers are unaware that interest on personal co-op loans still is deductible under the new law.

Another boost came in 1971 when the state Legislature allowed banks and other lenders to offer co-op loans.