Approximately 75% of New York City’s apartment market consists of co-operatives. Unlike condos, buying a co-op means purchasing shares in a corporation, and the board of that corporation has broad legal authority to approve or reject a buyer for almost any financial reason. The REBNY Financial Statement is the document that determines whether a buyer clears that bar.
A mortgage pre-approval tells the board what a lender is willing to lend. The REBNY Financial Statement tells the board everything else: assets, liabilities, income, monthly expenses, plus the two metrics boards care about most: debt-to-income ratio and post-closing liquidity. Agents who understand the document, know how boards evaluate it, and prepare buyers before submission get their deals through. Those who treat it as paperwork to fill out at offer time do not.
Key Takeaways
- The REBNY Financial Statement is a standardized two-page personal balance sheet required for virtually every co-op purchase in New York City. It accompanies offers on all properties listed on REBNY’s Residential Listing Service.
- Co-op boards evaluate two primary metrics: debt-to-income ratio and post-closing liquidity.
- Most co-op boards in 2026 are looking for a DTI of 25% to 28% or lower.
- Post-closing liquidity requirements vary from six months to three years of combined mortgage and maintenance payments, held in liquid assets after the down payment and closing costs are paid.
- A REBNY Financial Statement submitted at offer with errors, omissions, or unsupported figures creates friction before the board package is even assembled.
What the REBNY Financial Statement Is
The REBNY Financial Statement is a standardized form created by the Real Estate Board of New York and used across the New York City market. It functions as a personal balance sheet and income and expense statement combined.
The form has two pages. The first covers assets and liabilities. The second covers monthly income and projected monthly expenses after purchase. Every co-op application includes one. Many listing agents request it with the initial offer before an offer is formally accepted, using it to pre-screen buyers before the sellers invest time in a deal.
The Four Sections
Assets. The buyer lists every asset, liquid and illiquid, with specific breakdowns the board will scrutinize:
- Cash and checking accounts
- Savings and money market accounts
- Stocks, bonds, and brokerage account balances
- Retirement accounts (401k, IRA, these count toward net worth but boards typically do not consider them fully liquid)
- Real estate owned and its estimated equity
- Other assets like vehicles, business interests, personal property
The distinction between liquid and illiquid assets matters significantly. A buyer with $2 million in real estate equity and $40,000 in cash may have a strong net worth figure but weak post-closing liquidity.
Liabilities. Every financial obligation is listed:
- Outstanding mortgage balances
- Car loans and student loans
- Credit card balances and lines of credit
- Alimony, child support, and any other recurring financial obligations
The liabilities section, combined with the monthly income, produces the DTI calculation the board applies to the buyer’s profile.
Monthly Income. Salary, bonus income, rental income, investment income, and any other recurring monthly income sources. Bonus income is frequently discounted by boards. Many apply only 50% of annual bonus to the monthly income calculation, particularly if the bonus is variable. Agents representing buyers with significant bonus compensation should understand how their target building treats variable income before submitting the offer.
Projected Monthly Expenses After Purchase. This section is where most buyers underestimate their obligations.
- The proposed mortgage payment
- The building’s monthly maintenance fee
- All existing debt obligations from the liabilities section
- Other recurring monthly payments
This combined figure, divided by gross monthly income, produces the DTI ratio the board evaluates. The maintenance fee is a co-op-specific cost that does not exist in condo or townhouse purchases. It is the carrying cost of the shared building expenses and can range from a few hundred dollars to several thousand monthly depending on the building’s financial structure.
The Two Metrics That Determine Board Approval
Debt-to-Income Ratio
Most New York co-op boards in 2026 are applying a DTI threshold of 25% to 28%, stricter than the 30% to 35% range that was standard several years ago and significantly below what a mortgage lender may approve. A buyer who qualifies for a mortgage at 40% DTI may be rejected by a conservative co-op board at the same income and purchase price.
The calculation:
DTI = (monthly mortgage payment plus monthly maintenance plus all other monthly debt obligations) divided by gross monthly income
A buyer at 32% DTI applying to a building with a 28% threshold will not pass the board regardless of how strong the rest of the application is. The right response is identifying a building whose thresholds the buyer actually meets, before the offer is submitted.
Post-Closing Liquidity
Post-closing liquidity is the liquid assets the buyer will have remaining after the down payment and all closing costs are paid. Co-op boards typically require buyers to demonstrate six months to three years of combined mortgage and maintenance payments in liquid assets after closing.
The calculation:
Required post-closing liquidity = monthly mortgage payment plus monthly maintenance, multiplied by the building’s required number of months
A buyer purchasing a co-op with a $4,500 monthly mortgage and $1,800 monthly maintenance ($6,300 combined) in a building requiring 24 months of post-closing liquidity must have $151,200 in liquid assets remaining after closing.
Retirement accounts are generally not counted as fully liquid. A buyer who meets the down payment requirement but depletes their liquid assets to do so may fail the liquidity test even with strong income.
This is the calculation most buyers and many agents do not run until the board package is in progress. Running it before offer submission determines whether the buyer can realistically pass the board at that price point, or whether a lower purchase price, a larger down payment, or a different building is the answer.
What Supporting Documents Accompany the Statement
The REBNY Financial Statement submitted with an offer does not require backup documentation at that stage. The board package submitted after contract signing does. Every figure on the financial statement must be supported by documentation in the package:
- Two years of federal tax returns with all schedules
- Two to three recent pay stubs and an employment verification letter on company letterhead confirming title, salary, and tenure
- Bank, brokerage, and retirement account statements for the most recent two to six months, confirming the asset balances on the financial statement
- Reference letters, typically two or three personal references, one to two professional references, a landlord reference, and an employer letter
Figures on the REBNY Financial Statement that do not match the supporting documents create immediate questions for the board. An asset listed at $200,000 that is supported by a statement showing $185,000 requires an explanation. Buyers should be walked through the reconciliation between the financial statement and every supporting document before the package is submitted.
Common Mistakes That Delay or Derail Board Approval
Overstating liquid assets. Listing retirement account balances as fully liquid assets inflates the post-closing liquidity figure. Boards recognize this and apply their own discount (typically 50% to 60%) of retirement balances when calculating usable liquid assets. The financial statement should reflect an honest liquidity figure, and not the most favorable interpretation of every asset category.
Omitting liabilities. A student loan not listed on the REBNY Financial Statement that appears on a credit report during the board’s background check raises a material credibility issue. Every liability should be listed, even those the buyer considers minor or plans to pay off before closing.
Underestimating projected monthly expenses. Buyers who list only the proposed mortgage and maintenance and omit existing debt payments produce a DTI figure that is lower than the board will calculate from the full liability picture. The projected expenses section must reflect the buyer’s complete monthly obligation picture post-closing.
Submitting without running the DTI and liquidity calculations first. An offer submitted with a financial statement that fails the building’s DTI or liquidity threshold sends the deal toward a board rejection that is fully predictable from the numbers available before submission. Agents who run both calculations before offer, against the specific building’s known requirements, can avoid this outcome.
Building-Specific Requirements
Co-op boards set their own financial requirements, and they vary significantly. A building on the Upper East Side may require 24 months of post-closing liquidity and a 25% DTI. A building in Brooklyn may require 12 months and a 28% DTI. Requirements are not published publicly in most cases.
The listing agent is the primary source for building-specific financial requirements. Asking the listing agent for the board’s DTI and liquidity thresholds before offer submission is standard practice. The answer determines whether the buyer qualifies for that specific building at that specific price point.
What an Agent Should Do Before Submitting the REBNY Financial Statement
- Obtain the building’s DTI and liquidity thresholds from the listing agent before the offer is prepared.
- Gather the buyer’s income, asset, liability, and debt figures, including all accounts the buyer plans to list as assets.
- Run the DTI calculation using the proposed mortgage payment, the building’s maintenance fee, and all existing monthly debt obligations.
- Run the post-closing liquidity calculation using only liquid assets like cash, checking, savings, and brokerage accounts, excluding retirement accounts or applying the board’s likely discount.
- If both figures are within the building’s thresholds, proceed. If either falls outside, identify whether a price adjustment, a larger down payment, or a different building resolves the issue before the offer is submitted.
A buyer who qualifies financially at the offer stage and whose financial statement is accurate, complete, and consistent with their supporting documents moves through the board process smoothly. A buyer whose financial statement requires explanation at the package stage adds uncertainty to a process that already has enough of it.
Common Questions
Is the REBNY Financial Statement required for condos?
Condos do not have the same board approval process as co-ops. The REBNY Financial Statement is occasionally requested by condo sellers but is not standard. It is a co-op-specific document for practical purposes.
What if the buyer’s income is variable, freelance, commission-based, or bonus-heavy?
Boards handle variable income differently by building. Commission income and freelance income are typically averaged across two years of tax returns. Bonus income is frequently discounted, with many boards applying 50% of the average annual bonus to the monthly income calculation. Buyers with significant variable income should have their income figure reviewed against the board’s likely approach before the offer is submitted.
Can a buyer fail the board despite mortgage approval?
Yes. Mortgage approval and co-op board approval are independent assessments applying different standards. A buyer approved for a mortgage at 40% DTI may be rejected by a board with a 25% DTI threshold. Board rejection after mortgage approval is one of the most frustrating outcomes in a New York co-op transaction, and preventable with proper pre-offer screening.
Does the buyer need to update the financial statement if circumstances change between offer and board package?
Yes. If the buyer’s financial position changes materially between the offer and board submission, for example a job change, a significant asset purchase, or new debt, the financial statement in the board package should reflect the current position. Submitting an outdated financial statement that no longer matches the buyer’s supporting documents creates discrepancies the board will identify.
The Bottom Line
The REBNY Financial Statement is the first document a co-op board uses to evaluate a buyer. An accurate, well-prepared statement that passes the building’s DTI and liquidity thresholds moves the deal forward.
One that fails those thresholds, or raises questions through inconsistency or omission, creates friction that is difficult to recover from.
New York agents who run the calculations before the offer is submitted, know the building’s specific requirements, and prepare buyers on what the document must show are the ones who get their buyers through the board.
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