co-op

Boards like to see cash reserves...some like to see an equivalent of 1 yrs worth of monthlies in your cash account....it all depends on the board, your salaries, what your monthlies are, do you both work, etc etc etc

gonna be a tough one. you just have to make yourselves look like a good risk to take with the board.

In a Manhattan co-op you would most surely be rejected. Most want in your bank account, completely liquid, 1-2 years worth of maintenance and sometimes mortgage payments left when you are done with the deal. $5,000 in cash would likely result in a board rejection without an interview.

In Queens, I am not sure if co-ops are more forgiving, but what you outline would, I imagine, fall outside acceptable parameters for even the most liberal coops. With $5,000 in the bank after closing, how will you afford to move? Get furniture? Handle a new transmission for the car if needed while still making payments? What is a medical expense pops up in the next 6 months? What ifone of you is laid off your job and it takes 6-12 months to get back on your feet? What is the building imposes a special assessment in the next 12 months--where will you get the cash to cover it? These are the questions and concerns board members are likely to have in a co-op where the financial wherewithall and stability of every shareholder is of great concern.

Does the co-op allow guarantors and/or co-purchasing? Maybe one of your parents could be a guarantor or co-purchase the apartment with you.

For you to have a chance on your own, I think your debt to income ratio needs to be really, really low - like 10% or less - with enough left over each month to quickly rebuild your savings. Both of you will probably need to have salaries that would allow you to carry the apartment on your own in the event one of your loses your job because otherwise you have no cushion.

Good luck.

You are marginal candidates but magic can be worked. So much depends on details: How many months' housing payments is $5,000? Do you have non-liquid assets (say, retirement funds) that you could tap in the case of an emergency? What's your debt-to-income ratio going to be post-closing? How long have you been at your current jobs? How strong are your recommendation letters? Could you get future help from your parents if you need it?

ali r.
DG Neary Realty

bizarre you would be inquiring here..simply, what are the rules of the coop?..that you lack the most basic undestanding tells me you are likely using a buyers' broker!...call the managing agent for the building and ask what the financing requirements are for the coop

it is unlikely that, in your current financial condition, you will be qualified to buy this coop

and if you are able to buy in this coop, i would be careful---i would not want to own in a coop full of people as leveraged to the edge as you will be

Hopefully you don't work in the financial service industry. That would be strike 2.

you currently are not "cash poor" as you have the funds for the dp...you will be "cash poor" AFTER the purchase

If, after the down payment, you have NO money left in the bank post-closing -- you cannot afford this apartment.

Period.

That $5k in the bank is a drop in the bucket. Even if this were a condo and you weren't trying to pass a board, it would be irresponsible of any homeowner to not have AT LEAST $15K in the bank - not after they've closed, but after they've MOVED and paid all of THOSE associated costs.

Add at least one zero to the sum you are being gifted and you might have a chance. I don't know what the purchase price of your home is or the monthly maintenance, but it could cost you $5K just to move so if I were on the board I would be a little worried about your financials. If you do get an interview, at least try to explain to them how you could draw upon additional cash if needed like a 401K loan or something like that. If you don't have any debt or cash but have a way to easily draw upon an investment or something, it might give you a chance for approval.