What is a REBNY Financial Statement and Why is it Important?

When buying a co-op apartment in NYC, the REBNY Financial Statement is a crucial document that sellers and listing agents use to assess the financial strength of potential buyers. This ‘balance sheet’ summarizes a buyer’s assets, liabilities, monthly income, and projected expenses. It helps determine if the buyer meets the co-op’s strict financial requirements during the board application process. In this blog, we’ll explore the critical components of the REBNY Financial Statement and how to analyze it effectively.

The document consists of two pages. The first page provides an overview of the buyer’s assets, liabilities, and projected expenses. The second page includes a detailed itemized list of assets, liabilities, and other income. To help you get started, we provide links to download the latest templates in Google Sheets, Excel, and PDF formats.

Completing the financial statement requires careful attention to detail. Doing this early in your search for a co-op apartment is advisable, as desirable properties sell quickly in NYC. Being prepared will prevent you from being outmaneuvered by competing buyers.

  1. Assets:

    Under the assets section, you must list all liquid and non-liquid assets for yourself and any co-applicant. The listing agent will check if you have enough liquid assets to cover the down payment (typically 20%), closing costs (1-2% for co-ops in NYC), and post-closing liquidity (usually 12-36 months’ worth). Some co-ops have specific guidelines for post-closing liquidity, which can vary depending on your financing situation.


  2. Liabilities:

    In this section, itemize any existing debt, such as mortgages, student loans, and unpaid taxes, that appears on your credit report. If you pay off credit card balances monthly, there’s no need to list them. The co-op board will run a credit check to verify your stated liabilities during the approval process.

  3. Sources of Income / Monthly:

    List all sources of income, including base salary, bonuses, dividends, real estate income, and any other income. This section is crucial for calculating your debt-to-income ratio, ideally below 30% or even 25% for most co-ops.

  4. Projected Expenses / Monthly:

    In this section, you must provide your unit’s monthly co-op maintenance payment and mortgage amount based on your offer terms. Include any other recurring monthly expenses like car payments or student loan payments. Make sure to update this section for each apartment you submit an offer on.

  5. Itemized Schedules (Page 2):

    Page 2 of the document is where you provide more specifics about the assets, liabilities, and other income listed on the first page. If you own another property, you’ll furnish details like estimated fair value, outstanding loan balance, rental income, and carrying costs.

Analyzing a REBNY Financial Statement as a seller involves focusing on critical factors that impact the buyer’s financial strength:

  1. Debt-to-Income Ratio: Check if the buyer’s debt-to-income ratio aligns with the co-op’s requirements (usually below 30% or 25%).
  2. Income Stability: Assess the type and consistency of the buyer’s income. Is it heavily reliant on bonuses or unpredictable income sources?
  3. Liquid Net Worth: Ensure the buyer has enough liquid assets to cover closing costs, down payment, and 1-2 years post-closing liquidity.

Selling a co-op that requires renovations may require a more conservative approach, ensuring the prospective buyer can meet the board’s financial requirements.

The REBNY Financial Statement plays a vital role in the co-op apartment purchase process. Completing and analyzing it accurately can increase your chances of board approval and a successful sale. Seek help from an experienced buyer’s agent who can guide you through the process and ensure you meet the co-op’s financial requirements. Remember, the financial statement is primarily required for co-op apartments, while condos and new constructions often have different documentation requirements. Always consult a professional for personalized advice and guidance.

(Note: The material presented here is for informational purposes only and should not be relied upon for tax, legal, financial, or accounting advice.)

If you’re interested in learning about buying or selling in Brooklyn, download our free Buying Into Brooklyn Ebook or our Seller’s Guide. We share a ton of valuable resources to demystify the buying and selling process.

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