Having a yearly salary 40 times your monthly mortgage is a good gauge of what you can afford. In your case, you can afford a mortgage of around $1500 per month. Once again, bit of a stretch for a one bedroom. I agree with the others, a studio or alcove co-op is your best bet, but board approval can be difficult. Maintenance fees are partially tax deductible, which can help you save money in the long-run vs. renting.
In short, definitely possible to buy a studio in the Upper East Side, it just may take some work finding the right apartment for you. Call me at 561-909-7019 if you have any further questions. I'd love to help in any way I can.
I am thinking they might request 20% down payment, this can be confirmed with a phone call or two.
Kieran Rodgers, Mortgage Banker
The Federal Savings Bank I 560 Broadhollow Road I Melville, NY 11747 I USA
direct: (631) 316-7272
fax: (646) 564-9421
Don't know if you're still thinking about this, since you posted your question a while ago, but yes, it is absolutely possible, and in fact, based on your salary and the fact that it would qualify you for most income-restricted apartments, the short answer is that you'd be nuts not to think about buying now!
I live in Central/East Harlem. My best friend and I moved to Harlem at about the same time a few years ago, and she got a 2-br apartment with a balcony for $200K. The location is tremendously convenient; she and I are both halfway between the 2/3 and the 4/5/6 trains (as well as the Metro North), so it makes it super easy to get to pretty much any part of the city. A couple blocks past the 2/3 is the A/B/C/D train, which offers even more options.
I would strongly recommend buying for you, and would be happy to run a search for you if you'd like to look around at what's available.
Let me know if I can help!
Douglas Elliman Real Estate
My contact info firstname.lastname@example.org
Passing a coop board will normally require after-closing-cost liquidity, and commonly, within a range of 2 yr's maintenance and mortgage to 1 yr's maintenance and mortgage. For argument's sake, if that were $1,466 per month (combined), you'd need about $18,000 to $36,000 left over after your 20% (likely) down payment plus closing fees.
Additionally, they will typically like to see that your monthly housing expense does not exceed 25 to 28% of your total annual income. Based on your salary, the maintenance and mortgage expense that you could afford would need to be at $1,466 or less. (There was a method to my madness in the carrying charges I indicated above.) Let's say your maintenance is $600 per month, your mortgage would need to be $866 or less which is unlikely if you are purchasing a one bedroom apartment on the Upper Eastside.
The solution for you may be purchsing a sponsor unit in which no board approval is needed. Sponsor units will ask you to pay for seller closing costs which include transfer tax. Keep in mind that doing so is negotiable, and at your price point, the state tranfer tax is roughly 1% of your purchase price + a tiny bit for the city.
So in summary, for your budget, it's more likely that your financials will work in purchasing a studio, perhaps with an alcove that could be converted or separated for privacy. You'll likely to need a sponsor unit and will probably be able to find one at about $280K.
Once you contact a lender or mortgage broker, they will let you know the specific amount of loan you will qualify for. Armed with a pre-approval, you'll be in a better position to determine your options.
If you'd like the names of some good lenders who could help you through this process, and certainly if you'd like to secure help to navigate the marketplace and locate what you need, I'm happy to assist.
Associate Broker, VP, Corcoran
The first step is to get pre-approved by a lender. This will give you an idea of what bank is willing to lend you based upon a variety of factors. It will give you an idea of the purchase price as well. Also bear in mind that co-ops have very different standards than the banks in terms of debt to income ratio as well as liquid assets after closing. The most important thing is to make sure you work with a skilled, experienced agent to guide you through the process.
I also live in the 10128 and know the area very well.
The answer to your question depends on the down payment and you ability to temporarily acquire assets. If you're looking at a 20% down building, you can buy up to $375K or $300K with 25% down.
Keep in mind, you will most likely be looking at a co-op and co-ops want to see assets left over after closing. Boards would also like to see a dept to income ratio of no more then 28% after closing.
What I would do first, is contact a mortgage professional and see how big of a loan you can qualify for and go from there.
Feel free to contact me with further questions and I will be happy to work with you or point you in the right direction.
BOND New York