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Coop & Condo Requirements

SONYMA finances loans to qualified borrowers purchasing individual condominium or cooperative units.

SONYMA encourages New York City residents to purchase new unsold condos. For details, see below.

Here are the requirements to purchase a condo or co-op with a SONYMA mortgage:

Condominiums:

  • Must be located in a project with a minimum of 10 units;

  • Must have at least 51% of the units in the project sold (40% if you are financing 90% or less of the value of the property or if the property is in a Target Area in New York City);

  • Must have at least 70% of the sold units in the project (excluding sponsor held units) occupied by their owners;

  • May require project approval by SONYMA and its mortgage pool insurer;

  • Must be managed by a professional management company experienced in managing condominium projects.

Cooperatives:

  • Maximum financing of up to 95% of the value of the property. (Applicants must make a minimum cash contribution of 3% of the value of the property.);

  • Must be located in a project with a minimum of 10 units;

  • Must have at least 51% of the units in an existing cooperative project sold (or 40% in a cooperative conversion project or if the property is in a Target Area in New York City);

  • Must have at least 70% of the sold units in the project (excluding sponsor held units) occupied by their owners;

  • Underlying mortgage, if any, must have a remaining term of at least three years;

  • Must not be a recent conversion project with an eviction plan. (Existing projects with eviction plans are eligible for SONYMA financing.);

  • May require project approval by SONYMA and its mortgage pool insurer;

  • When determining if a home qualifies under SONYMA's Purchase Price Limits, the proportionate share (%) of the cooperative project's underlying mortgage must be added to the purchase price of the unit being purchased. The combination of the unit sales price and the percentage share of the underlying mortgage cannot exceed SONYMA's purchase price limit. (Click here to see Purchase Price Limits for your area.);

  • Must not be a limited equity cooperative project. Such projects, including Mitchell-Lama projects, are not eligible for SONYMA financing;

  • Must be managed by a professional management company experienced in managing cooperative projects.

Note: Cooperatives are not eligible under the Remodel New York Program.

 

Questionnaires

For any loan application where the property being financed is a condominium or cooperative, SONYMA requires a condominium questionnaire or a cooperative questionnaire, as applicable, to be submitted to us. To obtain SONYMA’s version of these questionnaires, click on this link, SONYMA Forms. SONYMA does not require these specific questionnaires to be furnished.  Various versions of this form are accepted as long as the form provided includes responses to the questions on our form.


Purchasing Unsold Condos

SONYMA encourages New York City residents to purchase condos in newly constructed condominium developments that have run into difficulty selling all of their units. Here is how you can use a SONYMA mortgage to purchase one of these condos:

  • You do not have to be a first-time homebuyer if a condo is located in a Target Area, which is defined as a neighborhood that is considered economically distressed. To see a list of Target Areas, click here.

  • SONYMA has a reduced presale requirement for condos located in a Target Area. That means that only 40% of the units in a condominium development must be sold for an individual condo to become eligible for a SONYMA mortgage.

  • SONYMA will provide private mortgage insurance for borrowers whose down payments are less than 20%.

For more information about using a SONYMA mortgage to purchase a condo, call 1-800-382-4663.

Last updated: 03/10/14