Financing in New York>Question Details

Md1827, Home Buyer in New York, NY

I make 60k/year, am 25 years old and have 200k for a down payment. Can I reasonably get a mortgage for 100-150K for an NYC coop? no other debt

Asked by Md1827, New York, NY Sun Mar 27, 2011

I have had a steady job since graduating college 3 years ago, and made 60k last year. I have about 190-200k to put down as a down payment and am interested in purchasing a coop apt in Manhattan, currently looking in the 300-350K range, specifically with maintenance under 600/month. I am concerned that I won't get approved for a loan because I am young and only make 60k annually. I know that mortgages have been tougher to come by lately and am unsure I will get approved to buy. Also, am concerned that I will not get approved by a coop board, again mostly due to my age and relatively short time in the workforce. Any thoughts/advice? I have no other debt except 15k in student loans which I will be able to pay off before buying/applying for a mortgage.

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One more important point. Use a LOCAL Bank. I've had buyer go to a mortgage broker who used a bank in OHIO, and they turned the building down. Not ALL Banks are willing to lend to NYC Coops, and believe it or not Condo's too. Deal with a bank who has lent, have your banker do a check on the building to see who has lent to it recently. Fannie and Freddie's rules changed in February. The amount of a Fidelity Bond (the insurance on the building) or if they put 10% of their monthly maintainence income toward a reserve fund are two things that can get you a building turn down. The other is investor saturation, if one entity owns more than 10% other than the sponsor who may own rent stabilized units that they cannot sell, you won't clear Freddie and Fannies requirements. ASK your lender, if they don't give you a solid response, find another.
0 votes Thank Flag Link Wed Mar 30, 2011
You will be approved for the mortgage if you have a FICO of at least 720 and are paying your student loan on time.
The big concern is the co-op board. Each co-op has their own guidelines. It is important that you find a realtor that specializes in the area that you wish to purchase an apartment. The realotor can show you the apartments in which the board would approve you.
Even though I was in the mortgage field over 17 years when I bought my co-op, I depended upon my realtor to show me apartments that met my criterias and would approve me. She only had to show me 2 apartments!
0 votes Thank Flag Link Tue Mar 29, 2011
One more point I would like to make since I read your response. Why are you working with a broker and not directly with your bank. It does not make sense? Brokers do not control the process nor can they offer you a loan. They can simple arrange a loan. Furthermore the Federal Laws are changing on April 1st, and brokers are going to have an extremely hard time pricing your interest rate to be competitive since all Loan Officers are now going to have a flat compensation plan. What that means essentially is the broker is going to have to charge you twice as much to make any money or make half has much to be competitive.
0 votes Thank Flag Link Tue Mar 29, 2011
Much more is consider with applying for a home loan. Best contact mortgage broker complete loan application therefore you can receive "real answers"

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes Thank Flag Link Mon Mar 28, 2011
Hi Md. I have one more option. Perhaps others had mentioned it but I've only read a few responses. Have you considered another borough? I also do work in Queens. There are great neighborhoods, prices are very good and you will certainly get a ton more space for your money than in the city.

You would have your pick from many full one bedroom Coops that would be approximately 700-750sq.ft. and great proximity to the subway for fast and easy Manhattan access. I can show you some great apartments. Keep it in mind and call me any time to set up an appointment. Good luck.

Joseph C. Hastings
Prudential Douglas Elliman Real Estate
Cell: 917-579-1502.
0 votes Thank Flag Link Mon Mar 28, 2011
Thank you all so much for your insightful, thorough, and speedy responses! I really appreciate the help--I was getting a bit nervous since a broker I met at an open house told me that my income would not cut it--but it looks like I have some options. I am definitely going to meet with a mortgage broker and go from there, but wanted to get some advice about what I may be up against. Thanks again!
0 votes Thank Flag Link Mon Mar 28, 2011

It is interesting to read the posts and the answers on Trulia on a Daily basis. I think their is so much to gain from the professionals who monitor these posts and reply to them. Like all advice you have to take a little bit from this source, and sprinkle in a little from others such as a mortgage banker and an attorney. Honestly it is a case by case basis with each Cooperative. Each has its own rules and governing by - laws for financing. I do not think age is a big issue, or that you have been in the workforce for only three years. Yes maybe in a white glove coop, or a coop on Fifth, but generally speaking you seem to have the qualifications. You need to first speak to a banker like myself and get Pre Approved for a mortgage. You would also be best served by interviewing real estate agents who understand your needs and will find listings for you that match your criteria. You can email me directly if you need more personal advice about obtaining a mortage.

Peter Brown
Residential Home Funding
0 votes Thank Flag Link Mon Mar 28, 2011
Hi Md,

First you should contact a lender either a mortgage broker or a mortgage banker. I don't think you should have a problem securing a coop loan. Coop boards are all different. Many use 25% income to debt ratio, some are more liberal and may consider future potential income. A tough board may ask for 1 year of maintenance in an escrow account. You have options. You would qualify for most HDFC coops which are below market rate but because they are limited equity coops you may have to share some of the profits with the coop when you sell. If you find a sponsor unit in a coop there is "No Board" approval.

Manhattan real estate is always a good long term investment. I suggest working with an experienced local buyer's broker.

Good Luck.

Mitchell Hall, Associate Broker
The Corcoran Group
0 votes Thank Flag Link Mon Mar 28, 2011
Mitchell Hall, Real Estate Pro in New York, NY
As far as a loan goes, you can qualify. The issue is whether the co-op board will approve you. They will have stricter requirements than the bank, however they could potentially allow you to have a guarantor as well if your statistics don't work. Feel free to contact me and I would be happy to discuss this with you.
You are looking for something that makes sense, the $300,000 apartment that was on the cover of the real estate section of the times ends up being better because of the lower maintenance than the $199,000 apartment with the high maintenance.
0 votes Thank Flag Link Mon Mar 28, 2011
Dear MD,

The resounding advice is, see a mortgage lender for advice on what you can trully afford. When you have dons a consult and are comfortable with the figure you have both worked out together and will qualify for, start doing a search on what properties and areas your budget will allow.

My website offers the opportunity to search approximately 20,000 exclusive listings, representing the ENTIRE database of residential listings available through the membership of the Real Estate Board of New York (REBNY). It is complete with photos, floor plans and other information a buyer needs; and there is absolutely no obligation. Enjoy!
0 votes Thank Flag Link Mon Mar 28, 2011
You're certainly off to an outstanding start. I suggest you contact a mortgage broker and may I suggest one. Please note I do not receive any compensation for referrals. Jacob Letowsky of Metlife he's at 212-329-0933 or or Patricia Lavigne of Manhattan Mortgage, she's at or 212-745-9012, best of luck. Feel free to contact me if I may assist in your real estate search, best of luck.

Tony Lara
Licensed Real Estate Salesperson
Rutenberg Realty
0 votes Thank Flag Link Mon Mar 28, 2011
You need to speak with a mortgage broker, not a Realtor. If you would like the name and contact info for the mortgage broker I use not only for clients, but for family, please contact me at
Web Reference:
0 votes Thank Flag Link Mon Mar 28, 2011
Yes. It will depend on how much other debt you have and how expensive the maintence is of course, but I am actually working on a purchase with a recent Fordham grad who is obtaining a 230k loan with a 60k per year starting salary on a coop purchase. I got him a great deal, got him approved and he is closing next week. If you want to go thru your scenario in more detail, feel free to contact me at or 347-688-4337.
0 votes Thank Flag Link Mon Mar 28, 2011
Yes you will be approved by the bank and most of the boards, counting that your credit history is good.
Good Luck!!
0 votes Thank Flag Link Mon Mar 28, 2011
First of all congrats on being able to have saved so much money so early on. The question here is not can you get a mortgage, because you most likely can. The real question is can you get past a co-op board. The majority of co-op boards want to see a debt to income ratio of 25 % (some allow higher, some want much lower) and they also want to see about 2 years of mortgage and maintenance liquid after purchase (cash, stocks, bond - not 401K). Based on your income you have $1,250 a month to spend and actually less since I dont know what your monthly loan payment is on your student loan. Looking at a $300K put approximately $150K down to leave you enough for closing and to have enough in the bank after closing to satisfy a co-op....with a maintenance of $600 and an estimated mortgage rate of 4 7/8% your monthly your monthly housing cost would be approximately $1,390. So in this case you most likely would not pass a board.

The good news is that you can get some great studios in NYC for less than $300K. DId you see the article on the front page of the NY times this Sunday?

What you need to do it work with an experienced agent who can recommend a great mortgage broker and can find you the buildings that allow fo a higher debt to income ratio.

Jennifer H. Roberts
Licensed Real Estate Sales Associate
Halstead Property, LLC
Phone: 212-381-4229
Cell: 917-226-6555

view my current listings at
0 votes Thank Flag Link Mon Mar 28, 2011
Hello Mr buyer,
Usually the rule is: In Manhattan, you will be able to borrow three times your salary.
Anywhere else, you should be able to borrow 4 times your salary. And everything else depends on the rest.
If you need any help, I am connected to more than one great mortgage broker, who can help you figure out exactly how much you can borrow.
Good Luck,
Fern Hamberger
0 votes Thank Flag Link Mon Mar 28, 2011
Dear Md1827,

I think you are being too hard on yourself. You should meet with a loan/mortgage officer first and I am sure based on the information that you presented that you will have no problem qualifying for a mortgage. Once you meet with a mortgage professional, you will get the exact information that pertains to your financial situation before you begin looking at apartments.

Good luck.

Nirmala Caraballo
Licensed Real Estate Agent
Cruse Realty
1408 White Plains Road
Bronx, NY 10462
Tel.: 646-479-7873
0 votes Thank Flag Link Mon Mar 28, 2011
Dear Md,

To me this sounds like a no brainer, with little debt and a high down payment, your debt-to-income ratio should be good enough. Keep in mind most people buying studios are either pied-a-terre's or young professionals, so the co-op boards are aware who they can expect. Your age and length of employment should not be an issue. My suggestion is to contact a mortgage professional and get pre-qualified or pre-approved. Feel free to contact me if you need a recommendation. My contact got my recent customer a commitment letter in 3 days and a clear to close in 2 weeks. Yes, he is that good.

Hope this helps.
Eugene Kopman
Associate Broker
BOND New York
0 votes Thank Flag Link Mon Mar 28, 2011
Easily ! Sounds like an easy loan approval to me, I work with some great mortgage professionals will be happy to hook you up for a pre-approval.
C- 347 546 5453
0 votes Thank Flag Link Sun Mar 27, 2011
Most coops will require you to have a monthly debt ratio of less than 29% the lower the better, and post closing liquidity in reserve of 12x the mortgage and maintenance. If you have great credit, no other debt including student loans etc, you should qualify. I would need more information to do a full qualification, and would reccomend that you also contact a mortgage professional who can do a pre-approval for a loan. Your age cannot count against you. Your lenght of employment are fine. If 60K is salary that does not include bonues that is fine. if your 190-200K is liquid, that means not in an IRA or 401K that is fine, banks will discount any IRA or 401K coops may not take any IRA or 401K into consideration. Have you cacluated your estimated closing costs? They are lower for coops than condos because currently there is no mortgage tax for coops. If you would like more information please feel free to contact me. I have helped many 1st time buyers obtain their goals.
Our closing cost guide link below:
David Drake
Prudential Douglas Elliman 917 312 3240
0 votes Thank Flag Link Sun Mar 27, 2011
Considering your debt to income ratio & your solid down payment amount, you can most definitely be approved. We have an amazing mortgage broker in office and she specializes in co-ops. I'd be happy to assist you in your home search. Please contact me if you need an expert.
Thank you, Cecilly Exit Realty
0 votes Thank Flag Link Sun Mar 27, 2011
That is absolutely not true, you will get approved for a loan. Your income is good and your down payment is a good amount as well. Lenders look at your Debt -to-Income ratio, and according to your annual salary you should be fine. If you need help, feel free to call me at 917-361-6854. I can also put you in touch with my mortgage guy who recently did my own loan. You can also email me at
0 votes Thank Flag Link Sun Mar 27, 2011
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