Buying a Co-op on Long Island and Across Downstate New York

By median sale price, co-ops are the lowest-priced of the three home types in OneKey MLS’s Nassau and Suffolk market reports. In August 2026 the median co-op sold for $380,000 in Nassau and $257,500 in Suffolk, against $911,000 and $760,000 for a single-family home (Source: OneKey MLS, Nassau County and Suffolk County Local Market Updates, August 2026). The tradeoff is that two parties have to say yes: the lender, which reviews you and the building, and the co-op board. I do co-op loans, and I’ve closed co-op loans that other loan officers couldn’t get done. Here’s how it works, on Long Island and across downstate New York.

How a co-op mortgage works: shares, a lease and a share loan

When you buy a co-op, you don’t buy the apartment itself. Per the New York Attorney General, you buy shares in a corporation. The shares are allocated to a specific apartment, and owning them gives you a long-term proprietary lease for it. Fannie Mae describes it the same way from the lending side: the corporation holds title to the property and sells shares to individuals, who get a proprietary lease as evidence of title.

That changes the loan. A co-op loan is a co-op share loan. It finances your ownership interest in the corporation plus your right to occupy a unit in the building the corporation owns. The loan is secured by a pledge of your shares and an assignment of your proprietary lease. At closing the lender also takes a stock power, a document that lets it transfer the shares if the loan goes unpaid.

The recognition agreement

On a Fannie Mae loan, the co-op signs a recognition agreement with the lender, or its own documents do the same job. That paperwork lets the lender cover missed maintenance and makes the co-op tell the lender if an owner falls 90 days behind. Your attorney and the lender handle it. I mention it so the name doesn’t surprise you at closing.

Refinancing a co-op you own? See refinancing a co-op on Long Island or in New York City.

Co-op vs. condo on Long Island

A Long Island co-op buyer gets shares and a proprietary lease; a condo buyer owns real estate. They look alike from the hallway, not on paper.

Comparing the two? Run both through my mortgage calculator. A condo payment carries its own tax bill on top of the common charges. A co-op’s maintenance typically includes the building’s taxes already, so set the tax line to $0 if that’s the case.

Long Island co-op prices vs. condos and houses

Per OneKey MLS, the August 2026 co-op median was $380,000 in Nassau and $257,500 in Suffolk, less than half the single-family median in both counties. Here’s that month next to the last 12 months.

Nassau has the bigger co-op market, with 742 co-op sales over the 12 months against 392 in Suffolk.

In April to June 2026, OneKey counted 171 co-op sales in Nassau at a $370,000 median and 97 in Suffolk at a $279,000 median (Source: OneKey MLS, Nassau County and Suffolk County Quarterly Indicators, Q2-2026). For single-family prices month by month, see my Long Island housing market page.

What the lender reviews in a co-op building

On a co-op, the building gets reviewed on top of you. Fannie Mae’s Selling Guide says the project review is in addition to underwriting the buyer, the loan terms and the appraisal of the unit. Under Fannie Mae’s rules the lender, not Fannie Mae, decides whether the building is acceptable. The main exceptions are a newly converted building that wasn’t a gut rehab and a limited- or shared-equity co-op. Those generally go to Fannie Mae for review. Fannie Mae also buys co-op share loans only from lenders it has specially approved to sell them.

You don’t have to check these yourself. The lender does, and I start collecting the building’s answers as soon as I have its name. Lenders can use Fannie Mae Form 1074, the Request for Cooperative Project Information, to ask the managing agent, the board or the sponsor. Here’s what they look at under Fannie Mae’s co-op rules:

• Tax status. The co-op must qualify as a cooperative housing corporation under Section 216 of the Internal Revenue Code, and the lender’s file must show it.
• Finances. The lender reviews the co-op’s budget and its last two years of audited financial statements or tax returns, to confirm that cash flow covers its debt and expenses and that reserves are adequate.
• Losses. Current-year losses have tight limits under Fannie Mae’s rules: no two straight years of operating losses, and any shortfall has to come from a one-time expense.
• Owner-occupancy. Shares representing at least 50% of the co-op must have been sold to buyers who live there as their principal residence.
• Unpaid charges. No more than 15% of shareholders can be more than 60 days behind on what they owe the co-op, special assessments included.
• Commercial space. No more than 35% of the co-op, or of the building it’s in, can be commercial or mixed-use space.
• One big owner. Generally, no single owner, such as an investor or the sponsor, can hold more than 20% of the co-op’s shares (or of the units in a co-op with 21 or more units), or more than 2 units in one with 11 to 20 units. Some units are left out of the count, such as sponsor units under rent regulation, and a waiver exists.
• Lawsuits. Certain pending litigation can make the building ineligible, such as suits naming the co-op corporation, or sponsor suits about safety, structure or habitability.
• Repairs. A building that needs critical repairs, including material deficiencies or significant deferred maintenance, is ineligible.
• Insurance. The building must meet Fannie Mae’s insurance requirements.

Watch for one more thing. Under the same rules, if the building has a tax abatement or subsidy that ends within three years of the loan’s note date, the lender has to qualify you using the higher maintenance.

This is where co-op deals get stuck. So I ask for the building name and the managing agent’s contact before you make an offer, not after. Text me the listing at 631-250-6930 and I’ll tell you what the lender will need from the building.

Can you get an FHA or VA loan for a co-op?

FHA

FHA’s main handbook, 4000.1, lists the property types FHA insures for its standard single-family loans: detached and semi-detached houses, manufactured housing, townhouses and row houses, and units in FHA-approved condo projects. Co-op units aren’t on that list.

FHA does have a separate co-op program, Section 203(n) of the National Housing Act, set out in federal regulation 24 CFR 203.43c. The regulation defines the co-op corporation as one that holds title to a co-op development covered by a blanket mortgage insured by FHA, so it’s built for buildings whose own mortgage is FHA-insured. It also requires the co-op to sign an agreement with HUD and the lender, including giving up its right to approve buyers whose shares are financed under 203(n).

If FHA is your plan, tell me before you start looking at co-ops. I’ll put a conventional co-op share loan next to an FHA loan on a condo or a house, so you can compare the down payment and the monthly cost before you choose.

Already own a co-op and asking about a reverse mortgage? That’s a different loan; see reverse mortgages on co-ops in New York.

VA

The VA statute had a co-op provision, but it covered loans to buy co-op shares only if VA guaranteed them within five years after the provision was enacted on December 22, 2006. That window ran out in December 2011. A bill to bring VA co-op loans back, the Fair Access to Co-ops for Veterans Act of 2025 (H.R. 1803), was not law as of its last recorded action: on February 24, 2026, a House subcommittee forwarded it to the full Veterans’ Affairs Committee.

If you have VA eligibility and you like co-ops, call me, and we’ll put a conventional co-op share loan next to your other options. For houses and condos, see my guides to FHA loans and VA loans on Long Island.

Co-op maintenance and your debt-to-income ratio

Every co-op owner pays monthly maintenance, based on the number of shares allocated to the apartment. Fannie Mae’s co-op rules describe what shareholders pay the co-op as their share of the building’s blanket mortgage, real estate taxes and operating expenses.

The lender counts it. Fannie Mae counts the monthly co-op maintenance as part of your monthly housing expense, less any share of master utility charges for the unit. That housing expense, maintenance included, is what the lender uses to figure your debt-to-income ratio. So two apartments at the same price can qualify very differently when one carries a much higher maintenance.

For example, say you earn $96,000 a year, or $8,000 a month. You’re looking at two apartments at the same price, one with $900 maintenance and one with $1,300. That $400 difference adds 5 points to your debt-to-income ratio, even though the loan payment is the same.

The lender’s debt-to-income limit is a loan rule, not a board rule. For co-op share loans, Fannie Mae sets the maximum debt-to-income ratio in its Eligibility Matrix, and the lender’s underwriting decides where your file lands. Boards set their own limits, and they don’t have to match the lender’s. I cover those below.

Putting maintenance into my calculators

On my mortgage calculator, open Fine-tune and enter the maintenance in “HOA dues / month.” If the maintenance includes the building’s taxes, set “Property taxes / yr” to $0. On the affordability calculator, use “Monthly HOA / common charges” the same way and set the annual property tax to $0.

How co-op board approval works

The board’s decision is separate from the lender’s. Boards can approve or reject a buyer. Per the Attorney General, a co-op board must use prudent business judgment, like any corporate board, and must follow the co-op’s own rules: its bylaws, proprietary lease, certificate of incorporation and house rules. When the co-op has the right to approve buyers, Fannie Mae won’t buy or securitize the share loan until the lender shows clear evidence that the approval was given.

The board package

Each co-op has its own purchase application, often called the board package. In Suffolk, every co-op must use a standardized purchase application that lists the requirements to buy and includes a notice on where to find fair housing and anti-discrimination information. In Nassau, the board must include a notice of your rights under the county law in every purchase application. My mortgage document checklist opens with the co-op items already checked, so you can gather the lender’s papers and the board’s at the same time.

The interview and board ratios

If the board asks to meet you, treat it like a business meeting. Know your numbers, know the house rules, and bring copies of anything the board asked for.

Boards set their own financial requirements, and they don’t have to match the lender’s. The two numbers I get asked about most are debt-to-income and how much cash you’ll have left after closing. Ask the managing agent what this building looks for before you sign the contract, then try your numbers in the board ratio checker below.

Fair housing

Boards, like anyone who sells or rents housing, must follow fair housing laws. New York’s Human Rights Law makes discrimination unlawful by anyone who has the right to sell, rent or lease housing, including their agents, and the federal Fair Housing Act prohibits refusing to sell, or otherwise making a home unavailable, for discriminatory reasons. A co-op buyer who believes they faced discrimination can go to the New York State Division of Human Rights or to court.

Co-op board ratio checker

Type in your numbers to see your housing and debt ratios, and how many months of housing your savings would cover. It runs in your browser.

Co-op board approval deadlines in Nassau and Suffolk

Nassau and Suffolk county laws put co-op boards on a 45-day clock to approve or reject a buyer once the application is complete.

In Nassau the 45 days run from a complete application, so send a complete package the first time. Suffolk’s law was passed to make the application process transparent, require written reasons for a denial and protect against illegal discrimination.

Both laws end automatically if a statewide or federal law with the same or similar rules takes effect. A statewide bill, the Fairness in Cooperative Homeownership Act (S1452/A4507), was still in committee in October 2026, so both county laws still apply. For more on buying in each county, see my guides to buying in Nassau County and buying in Suffolk County.

Buying a co-op in New York City or Westchester

The loan works the same across downstate New York. The board rules don’t.

New York City’s co-op board deadlines (Local Law 58)

Since July 28, 2026, the city’s Local Law 58 gives boards in buildings with 10 or more apartments 15 days to say whether your package is complete, then 45 days from a complete package to decide, with one extension of up to 14 days. A board with a written summer recess can pause that clock in July and August. HDFC and other government-supervised co-ops are exempt, and the law doesn’t require a reason for a rejection. Many city boards also limit how much of the price you can finance, so ask the managing agent before you bid.

Co-op board rules in Westchester, Rockland and Putnam

Westchester County’s law gives boards 15 days to tell you whether your application is complete, then 60 days from a complete application to decide. The application has to list the board’s minimum financial requirements, so you can check your numbers before you apply. A rejection has to give the reason. In Rockland and Putnam, ask the managing agent.

Can you sublet a co-op?

It depends on the building. Each co-op sets its own sublet rules in its bylaws and proprietary lease. For a Fannie Mae loan, the co-op’s documents can’t put unreasonable limits on a shareholder’s ability to sell or sublease, and they must give the share lender the right to review and approve a sublease before the co-op consents to it.

Buying to rent out from day one is a different case. Fannie Mae co-op share loans are for primary residences and second homes only, so investment purchases aren’t eligible. If you might rent the apartment out someday, read the sublet rules before you sign. For rentals in general, see my page on investment property financing.

What to read before you sign

The New York Attorney General points co-op buyers to a few documents. Ask your attorney to get them early.

• Board minutes. The Attorney General calls the minutes of recent board meetings a very good source of information about a building’s problems.
• The latest financial report. The accountant’s footnotes can show the actual or potential cost of repairs.
• The report on director contracts. Shareholders get an annual report on contracts in which a director had an interest, and the Attorney General encourages buyers to review it before signing a contract of sale.
• The offering plan, on a sponsor sale. The Attorney General recommends reading the whole offering plan and talking to an attorney before you sign the purchase agreement.

A resale by an individual owner or company isn’t regulated by the Attorney General and needs no offering plan. If problems come up after a resale, the terms of your contract and applicable laws control your rights. That’s one more reason to have your own attorney read everything before you sign.

Step by step: buying a co-op on Long Island

1. Talk through your numbers with me: income, debts, savings and the maintenance range you’re looking at. New to buying? Start with my Long Island first-time home buyer guide. Self-employed? See how lenders count self-employed income.
2. Get pre-approved. Pre-approval takes only a soft credit check, so it won’t affect your credit score. A hard credit inquiry comes later, only when you’re ready to move forward with a loan and you authorize it.
3. Send me the building name before you offer. Text it to me at 631-250-6930. I look at how the building lines up with a lender’s co-op review and ask for the managing agent’s contact.
4. Make an offer and get the documents. Your attorney reviews the contract, the board minutes and the financial report.
5. Sign the contract and apply. The lender reviews you and the building, may send the managing agent Fannie Mae Form 1074, and orders the appraisal.
6. Submit the board package. Send it complete. The board’s deadlines are above for Nassau and Suffolk and for NYC and Westchester.
7. Board approval and loan approval. Both have to come through. The lender will want clear evidence of the board’s approval, so send it to me as soon as you have it.
8. Close with your attorney. The lender takes the pledge of your shares, the assignment of your proprietary lease and a stock power.

Agents: send me the building name and the managing agent’s contact with the offer. If the board package asks for the loan commitment letter, I’ll get it to your buyer as soon as the lender issues it.

I’m a mortgage loan originator at Scott Capital Group. I arrange your co-op share loan with one of the lenders I work with, and that lender makes the loan. We can handle the mortgage side.

Mistakes I see on co-op purchases

• Signing before anyone checks the building. The lender reviews the building on its own terms, so check it before you’re locked in.
• Counting on FHA or VA. Check that before you fall for an apartment.
• Forgetting the maintenance. The lender counts it in your debt-to-income ratio, right next to the loan payment.
• Draining your savings to close. Ask the managing agent what the board expects you to have left after closing before you decide how much cash to put in.
• Skipping the sublet rules. If you might rent it out someday, read them before you sign.

Frequently asked questions

Sources

1. New York State Attorney General, Cooperatives.
2. New York State Attorney General, Condominiums.
3. New York State Attorney General, Before You Buy a Co-op or Condo: The Physical Aspects.
4. New York State Attorney General, Understanding & Dealing With a Co-op Board of Directors.
5. Fannie Mae, Selling Guide B4-2.1-01, General Information on Project Standards.
6. Fannie Mae, Selling Guide B4-2.1-03, Ineligible Projects.
7. Fannie Mae, Selling Guide B4-2.2-01, Full Review Process.
8. Fannie Mae, Selling Guide B4-2.3-02, Co-op Project Eligibility.
9. Fannie Mae, Selling Guide B4-2.3-03, Legal Requirements for Co-op Projects.
10. Fannie Mae, Selling Guide B4-2.3-04, Loan Eligibility for Co-op Share Loans.
11. Fannie Mae, Selling Guide B3-6-02, Debt-to-Income Ratios.
12. Fannie Mae, Selling Guide B3-6-03, Monthly Housing Expense for the Subject Property.
13. New York State Senate, Uniform Commercial Code 9-102, Definitions.
14. New York State Senate, Real Property Law 339-e, Definitions (Condominium Act).
15. New York State Senate, Real Property Law 339-y, Separate taxation (Condominium Act).
16. HUD, FHA Single Family Housing Policy Handbook 4000.1.
17. eCFR, 24 CFR 203.43c, Eligibility of mortgages involving a dwelling unit in a cooperative housing development.
18. U.S. Code (govinfo), 38 U.S.C. 3710, Purchase or construction of homes.
19. GovInfo, Bill Status, H.R. 1803 (119th Congress), Fair Access to Co-ops for Veterans Act of 2025.
20. Nassau County, Local Law 30-2019 (signed copy).
21. Suffolk County Code, Chapter 391, Cooperative Housing, Article I.
22. New York City Council, Int. 1120-2024 (Local Law 58 of 2026), timelines for co-op boards to approve or deny a sale.
23. Westchester County Human Rights Commission, Cooperative Housing Disclosure.
24. New York State Senate, Bill S1452 (2025-2026), Fairness in Cooperative Homeownership Act.
25. New York State Senate, Executive Law 296 (Human Rights Law).
26. U.S. Code (govinfo), 42 U.S.C. 3604, Fair Housing Act.
27. New York State Senate, Executive Law 297, Procedure (Human Rights Law complaints and court actions).
28. OneKey MLS, Nassau County Local Market Update, August 2026.
29. OneKey MLS, Suffolk County Local Market Update, August 2026.
30. OneKey MLS, Nassau County Quarterly Indicators, Q2-2026.
31. OneKey MLS, Suffolk County Quarterly Indicators, Q2-2026.