Mi

Sorry, this posted before I was finished. My current salary is not sufficient. Mortgage and maintenance would be close to 70% of my gross salary.

Two out of the last three tax returns would also be sub-par, since I was in school and not working full-time.

Would I even be approved for a mortgage? Is this an automatic "no" for a co-op board?

Thank you all in advance.

"Is this an automatic "no" for a co-op board?"

Absolutely yes.

How did you even manage to accumulate 20% down? Was it gifted to you? That would be another red flag for co-op.

No, not gifted. It was accumulated via savings over a number of years, mostly prior to returning to school.

Having 25% down + 2 years mortgage + maintenance in the bank (in liquid assets, and after closing costs) is the rule of thumb I've been given. I'd wait another year or two to buy if I were you to get both the liquid assets up as well as the down payment ability. Just my opinion though.

Appears you should consider condos.

Forget the coop- You wouldnt be close to getting a mortgage- dont they want 28% max monthly payments/monthly income?

Marzipan wouldn't even be able to get a mortgage from a loan shark with mortgage + maintenance equalling 70% of his gross salary.

I think he's hoping the board will approve him on the *expectation* of finding a better job, which is about as likely as Mayor Bloomberg sipping pure maple syrup out of a 32-ounce container on the corner of 34th and Fifth.

Even if you're a one-percenter for whom the remaining 30% of your salary is still several thousand dollars (and you're looking to buy a multi-million-dollar apartment and live like a pauper until it's paid), 70% is just out of the question, even if you have no kids, no student debt, and nothing that would impede you making rapid payments.

"How did you even manage to accumulate 20% down? Was it gifted to you? That would be another red flag for co-op."

There's no need to look down on the OP like this. "Gifted"? If the OP is looking at a starter apartment under $300k, the suggestion that he/she couldn't have saved 20% of that number is a grave insult.

Marzipan, I'm guessing, from your "accumulated via savings over a number of years, mostly prior to returning to school" comment, that you had a good job that enabled you to save money, but have, in the past few years, been focusing on studying and haven't been earning as much.

Have you considered HDFC apartments? That might be right up your alley. High-salary people are forbidden to buy them, and since you presumably fit their income requirements now *and* have good savings *and* have good prospects for some day earning more, you'd make an ideal tenant.

Just keep saving money. Every additional dollar in the bank, to be used in your down payment, is one fewer dollar to borrow, and thus another tiny fraction of a percent in that all-important payment-to-income ratio. If you continue to save at your current rate, what will the ratio be at this time next year?

TZ: "grave insult"? Hardly. Do you live in a co-op? Have you ever gone through a board process? Perhaps you haven't which is why such a question would be demeaning or insulting to you. In any case, OP states:

"Two out of the last three tax returns would also be sub-par, since I was in school and not working full-time."

So, yes, it is curious how the 20% was accumulated. Also, Marzipan states that he/she has NO DEBT despite being in school. This is also a red-flag as to what other sources of wealth or financing might be at play. Believe me, I'm not knocking it. I wish Mr.Rybolovleva would adopt me as his son and buy me a condo in 15CPW but it's highly unlikely. Hey Ekaterina, need a brother?

I am optimistic on NYC real estate but it doesn't seem to be the right time yet for you to buy now. Your saving rate is admirable and is working for you. So continue to rent and save. There is no rush to buy.

UWSbeagle, I live in a condo and have never had to face a board, but when someone is accused of not having earned what they did in fact earn, and that someone else gave it to them, whether it's money, a degree, a job, or anything, it can be taken as an insult. It's not like Marzipan claims to have earned a fabulous amount of money; 20% down on a $300k starter apartment is only $60k, and plenty of people have saved that much.

Yes, Marzipan could have given more detail about how the money was earned -- several years at a job before going back to school would be my guess -- but in this age where seemingly everyone under about 40 is assumed to be leeching off their parents and generally not working too hard, let's hold off before assuming that it's a gift.

Save more and earn more until you can afford what you want. Mortgage should be 2x hhi to max 3x hhi (if you have stable income w/ guaranteed bumps).

TZ, thanks for your response but I must have personally struck a nerve with you because my post reads "How did you even manage to accumulate 20% down? Was it gifted to you?". If you find this question in the context of the OP accusatory, insulting or leeching (all of which you stated above), then I can agree to disagree with you about this because I think you're over-reacting.

As a board president, I can tell you we don't give one whit about where the money came from. We're just concerned that it's YOURS (and that you're not just "parking" someone's cash in your account to bolster your balance sheet for our benefit), and that you have sufficient income.

People are "gifted" or inherit money all the time. No big deal.

Triple_Zero - why are you so offended asking if it was a gift? The OP flat out said she/he would have a DTI of 70% if approved for their place, so its not without reason that it might be assumed to be a gift. That being said, if the OPs mortgage and maintenance payment would take over 70% of GROSS income, why in hell would you think you can afford that place?

E24 and UWSbeagle, I think I've figured out what's getting my goat here: the presence of the word "even". "How did you manage to accumulate 20% down?" sounds like a genuine question; "How did you even manage to accumulate 20% down?" contains a hint of incredulity or suspicion.

Does anyone else feel this? Maybe it's just me.

TZ: you've lived in Japan for too long. Stop looking for nuance.

In this instance, I feel that TZ's concern is justified. For those who have ever gone to any of those company sponsored sexual harrassment classes would know. It is how the person in the receiving end felt matters.

It is almost the culture in this forum that people would bragg about the wealth of their knownledge or wallet size, and get carried away. It may not be intentional, but it could have that effect.

People, really? Vic, TZ sorry but you're just as bad. You've made up your collective minds about OP without a shred of evidence as well. In your minds, she's a 30-something plucky mid-Western gal who worked hard after college, socked away a couple bucks, used some of that savings to broaden her career horizons by putting herself through MBA, Law, medical (you name it) school and now has her sights set on an apt purchase. Fact of the matter is the only thing we DO know is that her mort/mtnc is 70% of gross which is "fuzzy math" at best if those numbers are to work. And how do you know she's buying a $300k starter apt? Maybe she's a Russian oligarchs daughter on a tight budget who wants to buy the penthouse at ONE57.

Believe it or not, I have not made any assumptions on who the Ops is. I have advised him/her to continue to rent and save up more before considering buying a coop in NYC, based on what he/ she had written, nothing more.

i'm more interested in figuring out how u can even end up with 70% net income after paying taxes in nyc?

TZ: "How did you even manage to accumulate 20% down?" contains a hint of incredulity or suspicion.

The circumstances are unusual, so "even" doesn't seem out-of-line to me.

On the one hand, OP indicates a desire to spend 70% of _gross_ income on housing, giving the notion that OP may be a spendthrift.

On the other hand, OP has perfect credit / 20% down / additional reserves / no debt despite having just gotten out of school, giving the notion that OP may run a conservative fiscal ship.