What this calculator does
Buying a co-op in New York City means passing a board review, and boards apply their own financial tests that are often stricter than a lender's. The two most common are a debt-to-income limit (often 25% to 30%) and post-closing liquidity — cash and investments left after the down payment and closing costs, often one to two years of mortgage plus maintenance. This calculator runs both tests.
How to use it
- Enter price, down payment and mortgage rate.
- Enter the monthly maintenance from the listing.
- Enter household income, other debt payments and liquid assets.
- Set the board's limits if you know them (ask the listing agent or managing agent).
The formula
Debt-to-income = (mortgage payment + maintenance + other debts) ÷ gross monthly income. Post-closing liquidity = liquid assets − down payment − closing costs (estimated at 2%), expressed in months of housing costs (mortgage + maintenance).
Worked example
Using the default inputs shown in the calculator above:
| Item | Amount |
|---|---|
| Price | $750,000 |
| Down payment (20%) | $150,000 |
| Loan | $600,000 |
| Principal and interest | $3,792 |
| Monthly maintenance | $1,600 |
| Other monthly debts | $400 |
| Gross monthly income | $18,333 |
| Liquid assets before closing | $350,000 |
| Estimated closing costs (about 2%) | $15,000 |
| Liquid assets after closing | $185,000 |
Board check result: May not pass. DTI 31.6% (limit 28%) · 34.3 months of reserves after closing (needs 24).
Housing plus debts use 31.6% of gross income, above the 28% limit; a larger down payment or lower price lowers it. After paying the down payment and closing costs, reserves cover 34.3 months of housing costs, which meets the board's ask.
How NYC co-op boards decide
Many buildings, especially on the Upper East Side and Upper West Side, require 20% to 50% down and ask for tax returns, bank statements and reference letters. Maintenance covers the building's property tax, underlying mortgage, staff and upkeep, so it is higher than condo common charges. Co-op loans are exempt from mortgage recording tax, which lowers buyer closing costs.
Common mistakes and tips
- Counting retirement accounts at full value — many boards discount them or exclude them.
- Ignoring the building's financing limit, which can require a larger down payment than the lender does.
- Forgetting that maintenance rises over time, and some buildings add assessments.
- Leaving too little cash after closing; boards weigh liquidity heavily.
Frequently asked questions
What debt-to-income ratio do NYC co-op boards want?
Often 25% to 30% of gross income for housing plus debts, though each building sets its own rule.
What is post-closing liquidity?
The liquid assets you will still have after paying the down payment and closing costs. Boards commonly ask for one to two years of mortgage and maintenance.
Is a co-op cheaper than a condo?
Co-ops often sell for less and have lower closing costs, but maintenance can be higher because it includes the building's property tax and mortgage.
Can a board reject me without a reason?
In general, yes — co-op boards are not required to state reasons, though they may not discriminate on protected grounds. NYC has considered rules requiring more transparency.
Sources
Disclaimer
This calculator provides estimates for educational purposes only and is not financial, tax, legal, real estate, or insurance advice. Consult a licensed professional before making decisions.