What Are the Typical NYC Co-op Financial Requirements? Buying a Co-op Apartment in NYC

What Are the Typical NYC Co-op Financial Requirements? Learn More: https://goo.gl/UoET7p

Co-ops in New York City have notoriously strict financial requirements for buyers. These requirements include a minimum percentage down as well as a required debt-to-income ratio and post-closing liquidity target for applicants.

Conservative estimates for a co-op’s financial requirements are 20% down, a 25% debt-to-income ratio and approximately two years of post-closing liquidity.

Since financial requirements vary by co-op, partnering with a seasoned buyer’s agent on your search will allow you to more easily navigate the complexities of buying a co-op in New York City. You can also save thousands on your purchase by requesting an NYC real estate commission rebate from your buyer’s agent.

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So, what is the average co-op down payment requirement in NYC?

The most common down payment requirement for a co-op in New York City is 20%.  Other common down payment requirements in NYC for co-ops are 25%, 35% and 50%. It’s extremely rare to find a co-op which permits 10% down.

What is the post-closing liquidity requirement for NYC co-ops?

A typical co-op in NYC will require applicants to have approximately 1 to 2 years of post-closing liquidity. Post-closing liquidity estimates for how many months your liquid assets will be able to cover your monthly mortgage and co-op maintenance payments.

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What is the typical co-op board debt-to-income ratio?

The typical NYC co-op board looks for a debt to income ratio between 25 and 30%. Boards also like to see a history of consistent employment and stable or rising income for at least three years.

Are NYC co-op financial requirements flexible?

Although a co-op will never show flexibility on the down payment requirement, some boards are more flexible in their review of your debt-to-income and post-closing liquidity metrics. 

Under this type of co-op board, a qualified candidate is typically one who shows a clear and consistent monthly positive cash flow and the ability to comfortably cover his or her financing and maintenance payments.

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NYC Co-op Financial Requirements FAQ: https://www.hauseit.com/nyc-co-op-financial-requirements/