A co-op or condo purchase has two files, not one: yours, and the building's. Plenty of qualified buyers lose deals because the lender couldn't clear the project — owner-occupancy, reserves, litigation, a single investor owning too many units. I check the building early, before your offer is on the table.
Your credit is fine. Your income is fine. The building has an open lawsuit, or 62% of the units are rentals, or the reserve fund is thin. These are the failure points, and they're all knowable in advance.
Most conventional programs want at least half the units owner-occupied or second homes. Investor-heavy buildings need a different lender.
The HOA budget should put roughly 10% a year into reserves. Thin reserves are one of the most common warrantability failures.
No more than about 15% of units more than 60 days behind on common charges. Above that, a non-warrantable program.
Structural or safety litigation against the association can fail the whole project — even for a buyer with 40% down.
A condo is real property — you get a deed. A co-op is shares in a corporation plus a proprietary lease — you get a stock certificate. That distinction drives everything downstream.
| Condominium | Cooperative | |
|---|---|---|
| What you own | Real property — a deeded unit | Shares in a corporation + a proprietary lease |
| Loan type | Standard mortgage, recorded lien | Share loan, secured by stock & lease (UCC filing) |
| Board approval | Right of first refusal only — rarely exercised | Full board package and interview. The board can say no. |
| Typical down payment | As low as 3–5% conventional | 10–25% — many NYC boards require 20% minimum |
| Monthly charges | Common charges + separate property tax bill | Maintenance (includes your share of building tax & underlying mortgage) |
| Tax deduction | Your own property taxes | Your share of building taxes and underlying-mortgage interest |
| Subletting | Generally permitted | Usually restricted or barred by the board |
| FHA / VA eligible | Yes, if the project is on the approved list | Rarely — FHA and VA don't finance most co-ops |
| Closing costs | Higher — mortgage recording tax, title insurance | Lower — no mortgage recording tax, no title policy |
| Price per square foot | Higher | Typically 10–25% less for comparable space |
“Warrantable” means Fannie Mae or Freddie Mac will buy a loan in that building. Warrantable gets you the best rate and the lowest down payment. Non-warrantable isn't a dead end — it's a different lender, more down, and a slightly higher rate.
The lender sends the association a project questionnaire — occupancy, delinquencies, reserves, litigation, insurance, single-entity ownership.
Reserve contribution, pending special assessments, and any deferred-maintenance or structural-repair plan on the books.
Litigation, commercial space over roughly 35%, one owner holding too many units, short-term-rental operations in the building.
Warrantable → conventional, best pricing. Non-warrantable → a portfolio or non-QM program built for it, usually 20–25% down.
Most of the housing stock in Queens, Brooklyn and Manhattan is co-op or condo. It isn't a niche — it's the market.
A co-op is often the cheapest way into Queens, Brooklyn or Manhattan. Lower price per foot, lower closing costs.
The building failed the questionnaire. There's still a loan — portfolio and non-QM programs write these every week.
Newly converted or still-selling projects often can't hit occupancy thresholds yet. Needs a lender who handles pre-sale.
Condos are investor-friendly; co-ops usually aren't. Know which before you write the offer — see DSCR.
A Manhattan second home is financeable, but board rules and occupancy math both matter. Worth a call first.
Not just NYC — condo projects in Albany, Clifton Park and Saratoga get the same warrantability review.
Typical guardrails by property type. Every building is its own underwrite — send me the address and I'll tell you where it lands.
| Guideline | Warrantable condo | Co-op / non-warrantable |
|---|---|---|
| Minimum down | 3% first-time buyer · 5% conventional · 3.5% FHA if approved | 10–25% · board minimum often 20% |
| Minimum FICO | 620 conventional · 580 FHA | 680–700 typical |
| Max DTI | To 50% with automated approval | 43–45% typical · boards often want lower |
| Reserves | 0–2 months | Board may require 1–2 years of maintenance post-close |
| Owner-occupancy | 50%+ for investment purchases · no minimum for primary on many files | Reviewed case-by-case |
| Loan amount | To conforming, high-balance, or jumbo | Share loans to $3M on select programs |
| Occupancy | Primary, second home, investment | Primary and second home · investor use usually barred by board |
| Extra docs | Project questionnaire, budget, master insurance | Above, plus offering plan, board package, recognition agreement |
| Timeline | 30–45 days | 45–75 days — board approval drives the calendar |
A condo is real property — you get a deed to a specific unit and a normal recorded mortgage. A co-op is shares in a corporation plus a proprietary lease giving you the right to occupy an apartment; the loan is a share loan secured by that stock and lease. Co-ops are usually cheaper per square foot and cheaper to close, but require board approval, larger down payments, and generally can't be rented out.
Non-warrantable means Fannie Mae and Freddie Mac won't buy a loan in that building — usually because of low owner-occupancy, thin reserves, pending litigation, too much commercial space, or one entity owning too many units. You can absolutely still buy. It moves to a portfolio or non-QM program, typically with 20–25% down and a modestly higher rate.
On a condo, yes — if the project is on HUD's FHA-approved list, or qualifies under single-unit approval. On a co-op, almost never; FHA and VA don't finance the overwhelming majority of co-ops. If you need 3.5% down on an apartment, we look for an FHA-approved condo.
The lender and the board are two separate hurdles. A lender may allow 10–20% down; the board's house rules often require a minimum of 20%, and some prewar Manhattan buildings require 25–50%. The board's number governs. Always get the building's financial requirements before you offer.
Board approval. The loan itself can be ready in 30 days, but you'll assemble a board package, wait for review, and sit for an interview — and boards meet on their own schedule. Budget 45 to 75 days and start the package the day you're in contract.
Meaningfully, yes. Co-op share loans avoid New York's mortgage recording tax and don't require a title insurance policy — on a $700,000 loan that can be well over $15,000 in savings. You'll pay co-op-specific fees instead (recognition agreement, transfer, board fees), but the net is usually much lower.
Licensed across New York State — with deep roots in Albany and the Capital Region.
Don't see your town? Reach out — I lend statewide, NYC included. Or see every Capital Region town.