Financial questions for coop

Urbandigs nicely covers some co-op board hot buttons at: http://www.urbandigs.com/2007/02/co-op_board_pac.html

20% down is typical ($132K in your case). 30% is fairly common. You might see 50% or all-cash in certain high-end buildings. The board will probably look for sufficient net liquid assets to cover all obligations for a certain period, possibly a year. Stability and liquidity are as important as earning power, especially if your income is variable. With the economy teetering, recent/current income may carry a bit less weight than assets, because you could lose your job or you could get a lousy bonus.

Urbandigs puts debt-to-income at the top of his list. Historically, that's 100% correct. With credit so tight, though, boards may be more willing to trust your lender's assessment of your DTI. If a reputable lender has underwritten and approved you in this environment, the board will know that you have already cleared a pretty high DTI hurdle, relative to your loan-to-value ratio.

Also keep in mind that the board will set the minimum down payment as a percentage of your purchase price, but the lender will use the lesser of purchase prise and appraised value in calculating LTV. If the appraisal comes in below your price (a real possibility in current conditions), the principal limit on your mortgage may ultimately be set by the lender, not the co-op board.

Giname, are you working with a broker? If so he/she should be able to clue you in. Urbandigs is a great resource but every building has its particular requirements. A good broker will steer you toward buildings that would be a good match for your financial situation; for example, some buildings prefer to see a high steady income, others are ok if youre income fluctuates but have sufficient liquid assets (like if you're a banker).

When I bought my place recenlty I was advised that boards wanted to see 2 years worth of mortgage & maintenance liquid in your bank account. In some cases boards may require you to place additional funds in escrow for a period of time if they like you but feel your financial situation is borderline.

You can also ask the listing agent/broker, it's their job to provide this information. Nobody wants to go through the trouble of submitting an offer only to have the buyer rejected because he/she doesn't meet the board's financial requirements.