Co op post closing liquidity. TIA! When buying a co-op in...

Co op post closing liquidity. TIA! When buying a co-op in NYC, it is crucial to meet the building’s post-closing liquidity and debt-to-income ratio requirements. Jul 8, 2020 · Post-closing liquidity is a common requirement for buying into an NYC co-op. The second reason is to give the co-op board added peace of mind that other shareholders won’t have to shoulder your costs if those circumstances come to pass. When you buy a condo, you are buying a piece of real estate that’s your own. Many buildings, especially co-ops, require buyers to show post-closing liquidity, meaning proof of sufficient assets remaining after the purchase. Generally, these statements need to be dated within the last 60 – 90 days. This scrutiny can require a substantial down payment, typically ranging from 25% to 50%. It is How many bedrooms? If you're looking at co-ops west of Third (as indicated in your initial post), I'm surprised that you've found that many buildings with 20% down requirements. Co-op apartments in NYC generally have restrictions on how often you can sublet, and they typically charge owners a subletting fee. 55-23 31st Ave, Apt: 5e, 1 Beds, 1 Baths, Co-op for Sale, at $310,000 in , Astoria, Queens, New York, 11377 42-22 Ketcham Street, Apt: C20, 1 Beds, 1 Baths, Co-op for Sale, at $315,000 in , New York, Queens, New York, 11373 238 East 30th Street, Apt: 2f, 1 Baths, Co-op for Sale, at $328,000 in , New York City, Manhattan, New York, 10016 3777 INDEPENDENCE AVE, Apt: 6f, 1 Beds, 1 Baths, Co-op for Sale, at $339,000 in , Central Riverdale, Bronx, New York, 10463 925 Union Street, Apt: 1ef, 2 Beds, 2 Baths, Co-op for Sale, at $1,175,000 in Park Slope, Brooklyn, New York, 11215 655 Park Avenue, Apt: 2B, 4 Beds, 4 Baths, Co-op for Sale, at $3,550,000 in Lenox Hill, Manhattan, New York, 10065 , Apt: 5s, 1 Baths, Co-op for Sale, at $649,000 in , WESTVILL, Manhattan, New York, 10014 Discover the intricate world of post-closing liquidity in NYC real estate. Understand post-closing liquidity: Discover how much cash remains after purchasing an apartment in New York City. Beyond the paperwork, co-op boards look closely at liquidity, debt ratios, and post-closing reserves, and they may ask about intended use. Her is my inquiry: I am about to place a bid on what my broker has termed a "liberal coop" (20% down, unlimited subletting, co-purchasing/gifting allowed) on the UWS. Post-closing liquidity refers to the amount of liquid assets you have left after the purchase of the co-op. 1-2 Years Post-Closing Liquidity (12-24 months of mortgage and maintenance fees in liquid assets) My finances are currently: Salary: $109,805 Debt: $0 Liquid Savings: $130K (mostly in 4. com/clos Post Closing Liquidity Calculator Buying a New York City co-op or condo requires substantial capital. 35X post-closing liquidity. The last nice non-CPW UWS co-op I put a buyer in required . Lenders often have stricter requirements for co‑ops, and many buildings prefer larger down payments and post‑closing liquidity. Although the financial requirements for co-ops in NYC vary by building, a conservative estimate for a NYC co-op’s financial requirements is as follows: 20% down, 25% debt-to-income ratio and at least one to two years of post-closing liquidity. Some buildings prefer higher down payments or all-cash buyers. What is post-closing liquidity and why is it important to have enough money after the business is funded. com/post-closing-liquidity-definition-nyc/ What is the definition of post-closing liquidity and wh My co-op (and several others I had looked at) take note of the 401k, but $0 is counted in their post-closing liquidity calculations. While every co-op is different and most keep their specific requirements secret in order to avoid fair housing lawsuits, there are some general guidelines as to what makes a viable candidate for purchasing an NYC co-op: a healthy debt-to-income ratio and good post-closing liquidity. Requirements vary depending on the building. Be careful what you ask for because the co-op may come back with a requirement that you post a maintenance escrow (in lieu of the liquidity requirement). In conclusion, post-close liquidity requirements are one of the most important loan qualifications we deal with. There's such a range. These assets include cash, stocks, bonds, and other easily accessible funds. ali r. By understanding these requirements and implementing smart financial strategies, you can secure your place in a co-op while ensuring financial stability. Most co-ops will require you to meet strict financial requirements which may include a debt-to-income ratio (DTI) between 25% and 30% as well as post-closing liquidity of one to two years. A common co-op post closing liquidity requirement is an amount equivalent to 2 years of mortgage and maintenance. Ensure post-closing liquidity for NYC co-op ownership. What is Post Closing Liquidity? posted by Thomas Demsker This is a term that coops use when evaluating possible buyers. These requirements are common in co-op apartments rather than condo buildings, and are calculated by adding up all liquid assets and subtracting the down payment and estimated closing costs. Nov 8, 2023 · For example, if it’s a one-year requirement, you would need $48,000 in liquid assets after successfully closing on the co-op. A practical explainer on co‑op financing and underwriting norms is available from PropertyShark’s co‑op guide. For example, if your anticipated monthly mortgage payment is $2500 per month and your monthly maintenance is $1000, you would need to have at least $84,000 in liquid assets left over after your down payment ($3500 x 24 months). Depends on the board. How common is this? Curious to hear opinions. Dec 6, 2025 · Learn how NYC co-ops evaluate post-closing liquidity, what counts as liquid assets, how reserves are calculated, and how to prepare a strong financial profile. In any event, I think that based on your descriptions that 2 yrs mortgage + maintenance in liquid assets would be the absolute minimum post-closing. Typical co-op buyer financial requirements in NYC include 20% down, a debt-to-income ratio between 25% to 35% and 1 to 2 years of post-closing liquidity. My housing DTI is 22% and total DTI is 28% (no CC debt, just student loans). How do lenders verify post-close liquidity? To verify liquidity, lenders typically require two months of bank and/or brokerage statements to support the stated amount of liquidity from a guarantor. Learn how co-op and condo boards evaluate financial stability. Key Takeaway: The Importance of Post-Closing Liquidity in Co-op Ownership Understanding post-closing liquidity is a crucial step in the process of acquiring a co-op in New York City. Hey r/boggleheads, long time lurker here looking for some advice. Discover essential tips, requirements to secure financial stability in co-op living. You don’t actually own the real estate; you own shares in a corporation that owns the building. Learn the key differences between NYC condo and co-op closings, including timelines, board approvals, and preparation tips to streamline the process. You need to confirm what the board considers a liquid asset; this can vary by building. com/hauseit-buyer-closing-credit-nyc/Calculate Your Buyer Closing Costs: https://www. Before submitting an offer on a co-op, it's important to have your buyer's agent confirm the co-op's financial requirements. Although most lenders require at least 6 months of post closing liquidity, co-ops typically have much stricter guidelines. Co-op financial requirements in NYC include a sizable down payment, a healthy debt-to-income ratio, and proof of post-closing liquidity (money you have left after you have made the down payment and paid most of the closing costs). A co-op post-closing cash flow statement may be requested as part of your board application. . Post-closing liquidity—the amount of cash a buyer has left after funding a business acquisition—is a critical but often overlooked factor in SBA loan approvals. Navigating the post-closing liquidity requirements of NYC co-ops is a critical step for potential co-op owners and investors. A typical NYC co-op requires buyers to have post-closing liquidity of 1-2 years and a debt-to-income ratio below 25% or 30%. Not even an after-penalty number. Here's what it means and how much cash you need on StreetEasy's One Block Over. Download a template post-closing cash flow statement. Co‑ops use share loans, where the collateral is your stock certificate and proprietary lease. Post closing liquidity may not need to be cash but can be a balanced mix assets. It is a reference to what a buyer will have in liquid cash after deducting the down-payment and closing costs from their liquid funds. What is the typical post-closing liquidity rule for co-ops in NYC? A typical New York City co-op will expect buyers to have at least one to two years in post-closing liquidity. The first is to guard the prospective buyer against unexpected circumstances such as lost income or lost employment. The Co-op: Joining the Club Think of a Co-op like an exclusive country club. Save 2% When Buying a Co-op in NYC: https://www. Also, that post-closing liquid cash availability means that the borrower will not have to rely on profit generated by the business to cover their own personal living expenses, thus allowing the business to flourish. Many buyers mistakenly focus only on their equity injection, not realizing that lenders also assess what reserves remain after the deal closes. What is the definition of post-closing liquidity and why does it matter in NYC? If you are buying a co-op apartment in NYC, post-closing liquidity is one of the co-op financial requirements which the board will review as part of the co-op board application process. So how do we solve this problem of post-closing liquidity? Unfortunately, it seems that some boards are tightening standards. Request a confidential consultation. I'm a 30 year old native New Yorker and hoping to buy a co-op apartment in the next couple years. Post-closing liquidity is a measure of how much in liquid assets you have after closing on your co-op, factoring in your down payment and closing costs. NYC co-op boards look carefully at buyers' debt to income ratio, or DTI. 7% no-penalty CDs and HYSAs) Retirement: $84K (6K of which is in Roth IRA which I could temporarily withdraw without penalty to bolster PCL requirement) When considering the application package of a potential apartment buyer, there are three terms every co-op board member absolutely needs to know: down payment, debt-to-income ratio, and post-closing liquidity. This NYC-specific Co-Op Board Interview Prep Kit V3. Feb 11, 2025 · Co-ops have the post closing liquidity requirement for two reasons. But what is it, and why is it important? StreetEasy's One Block Over explains. hauseit. Once that requirement is suggested, you may have difficulty walking it back. Post-closing liquidity is the amount the board of directors and your lender want you to have once closing your condo or co-op. Given our proximity to financial and legal service powerhouses, we would even be okay raising max financing to 75% because we know many young professionals who would love our neighborhood, but down payment and post-closing liquidity requirements are prohibitive. However, it's easier to meet these financial requirements as an all-cash buyer since the lack of a mortgage payment means that your monthly carrying costs are lower. " Surrey, let me ask you: what happens if you find a co-op board that's happy with your $45,000 in post-closing liquidity (I'm assuming roughly $3700/month in mortgage and maintenance), and after you close and move into your new place, despite your "strong salary", you lose your job? Post Closing Liquidity Calculator Buying a New York City co-op or condo requires substantial capital. Post-Closing Liquidity Requirements: Some co-op boards now require 25-30% down payments and one to two years of post-closing liquidity (monthly maintenance and mortgage payments in reserve). Understand UWS co-op post-closing liquidity, how boards calculate reserves, and how to present assets discreetly. Sorry for my re-post but I am new on here and it took Streeteasy 6 days to approve my earlier post. For those not familiar, NYC co-ops have some unique (and frustrating) financial requirements, like needing a 20% down payment and having 2 years of post-closing liquidity saved up. Nov 28, 2025 · Post Closing Liquidity Post Closing Liquidity Calculator Buying a co-op or condo in New York City requires more than a down payment and closing costs. A post-closing REBNY coop financial statement is a common requirement for co-op board applications in NYC. The Board of a co-op acts as the gatekeeper, meticulously reviewing financial details including tax returns, debt-to-income ratio, and post-closing liquidity, which means the cash you retain after closing. I guess the argument is that anyone accessing their 401k is in pretty bad shape, but it seems to penalize those who max out contributions rather than keeping it in cash. Upper East Side Co-op Question: Post-Closing Liquidity for a 20% down payment building vs 35% down payment building Hi All, Looking at two UES co-ops, 1 that requires a 20% down payment, and another that requires a 35% down payment. Can anyone confirm if must be cash in savings/checking accounts only? Or can funds in retirement accounts also be included in the reserve amount? Having to basically have another down payment amount in reserves for a coop makes me question whether this is the best move. What is the definition of post-closing liquidity and why does it matter in NYC? If you are buying a co-op apartment in NYC, post-closing liquidity is one of the co-op financial requirements which the board will review as part of … I know there’s normally the 2 year post-closing liquidity they look for. Post Closing Liquidity Calculator Buying a New York City co-op or condo requires substantial capital. NYC co-op post closing liquidity requirement Real estate gurus :), I am told I am required to show proof of 24x my monthly payment in cash/liquid assets on top of the 20% downpayment. 0 gives you the exact structure, psychology, and financial positioning guidance boards look for — with 60 real-world style questions and risk coaching under every single one. The post-closing financial statement is your pre-closing financial statement with three changes: add your purchase price to real estate under assets, remove the contract deposit from assets, and add your loan balance to liabilities. What is Post-Closing Liquidity in NYC? https://www. ojrw, upucr, 8bq9d, bigb, sa11in, o6qoqe, dxjbw, 3ocop, lkd0b0, ygu6w,