The short answer

Buy a co-op if you'll live in the apartment yourself, have strong savings and want the lower price. Buy a condo if you may rent it out, are buying from overseas or with a parent's help, or want the widest pool of buyers when you sell. Co-ops are often 10% to 40% cheaper than comparable condos, but boards commonly require 20% down, a debt-to-income ratio of about 25% to 35%, and one to two years of housing costs left in savings after closing.

Key numbers

Co-op ownership
Shares in the building's corporation plus a proprietary lease
Condo ownership
The unit itself, as real property
Co-op price
Often 10% to 40% below a comparable condo
Typical co-op down payment
20%; some buildings ask for 25% or more
Typical co-op debt-to-income limit
About 25% to 35%
Post-closing liquidity
Commonly one to two years of mortgage and maintenance

The difference in one table

Co-op Condo
What you own Shares in the building's corporation and a lease on your unit Your unit, plus a share of the common areas
Approval Board review of your finances, plus an interview Usually an application; the building's only option is to match the price (right of first refusal)
Down payment Commonly 20%, sometimes 25% or more Set by your lender, not the building
Monthly cost Maintenance, which includes your share of the building's property taxes Common charges plus a separate property-tax bill
Renting it out Restricted; many buildings limit or ban sublets Usually allowed, within building rules
Closing costs About 2%, with no mortgage recording tax or title insurance About 3% to 5%
Help from family Gifts are often allowed; a parent buying for a child often isn't Usually fine
Resale Buyers must pass the same board review A wider pool, including investors and overseas buyers

What a co-op board looks at

A co-op board decides who can buy into the building, and it doesn't have to explain a rejection. In practice, boards review:

  • Down payment. 20% is the most common minimum. Some buildings ask for 25% or more.
  • Debt-to-income ratio. Your mortgage, maintenance and other debt payments divided by your income, usually capped at about 25% to 35%.
  • Post-closing liquidity. Liquid savings left after closing, often one to two years of mortgage and maintenance payments. With a $3,000 mortgage payment and $1,000 maintenance, one year means $48,000 in the bank after closing.
  • The board package and interview. Tax returns, bank statements, an employment letter, reference letters and a short interview.

Flushing, Kew Gardens Hills, Fresh Meadows, Bayside, Forest Hills and Elmhurst all have many co-op buildings, and their rules vary widely from one building to the next.

When a condo is worth the premium

  • You may rent the apartment out later.
  • You're buying from outside the U.S., or without U.S. income and credit history.
  • A parent is buying for a child, or family members are buying together.
  • You expect to own for only a few years and want an easier resale.
  • You want to put down less than 20%.

How the monthly costs compare

A co-op's maintenance covers the building's operating costs, its property taxes and any underlying building mortgage. A condo owner pays common charges to the building and a separate property-tax bill to the city. When you compare two apartments, add the condo's property taxes to its common charges before you compare them with a co-op's maintenance.

Co-op owners can generally deduct their share of the building's property taxes and mortgage interest on their income tax return, as a homeowner would. A tax advisor can confirm how this applies to you.

Questions to ask before you make an offer

  • What are the minimum down payment and the debt-to-income limit?
  • Does the building allow subletting, gifts, guarantors or co-purchasing?
  • Is there a flip tax, and who pays it?
  • Are there current or planned assessments?
  • How large is the reserve fund, and does the building carry an underlying mortgage?

Questions people ask

Can I rent out my co-op apartment in Queens?

Usually only on the building's terms. Many co-ops allow subletting only after you've lived there for a set time, cap how long you can sublet, or charge a sublet fee. Condos generally allow renting, subject to building rules.

Can parents buy a co-op for their child?

Some buildings allow it, and many don't. A co-op that accepts gift money may still refuse a purchase where a parent buys the apartment for a child to live in. Condos generally don't restrict this.

What is a flip tax?

A transfer fee a co-op charges when an apartment is sold. The building sets it, commonly at 1% to 3% of the price, and the seller usually pays it.

Is it harder to sell a co-op?

It can take longer, because your buyer must pass the same board review you did. Pricing carefully matters more for co-ops, since the pool of qualified buyers is smaller.

Sources

  1. Hauseit, NYC co-op financial requirements
  2. StreetEasy, Post-closing liquidity in NYC
  3. Milton Coste, NYC buyer closing costs: co-op vs. condo
  4. Hauseit, NYC co-op closing timeline

This guide is general information about New York real estate as of October 30, 2026. It isn't legal, tax or financial advice. Rates, programs and rules change, so confirm the details of your purchase or sale with your attorney, lender or tax advisor.