Trying to choose between a co-op and a condo in Queens? The right call can save you time, money, and stress. You want flexibility, a smooth closing, and confidence about monthly costs. This guide breaks down what you own, how financing works, what to expect monthly, and how long it takes to close so you can move forward with clarity. Let’s dive in.
Co-op vs. condo basics
What you actually own
- Condo: You receive a deed to your unit and a share of the common elements through the condo association.
- Co-op: You buy shares in a corporation that owns the building and receive a proprietary lease to live in a specific apartment.
How transfers work
- Condo: Transfers by deed. Buyers typically obtain title insurance covering their real property ownership.
- Co-op: Transfers by selling shares and assigning the proprietary lease. Title protection focuses on your interest in the lease and the corporation’s title.
Why this matters in Queens
Queens has both product types. Long Island City offers substantial newer condo inventory, while many neighborhoods feature established co-op buildings. Your day-to-day experience, monthly costs, and resale strategy can differ based on this structure.
Financing and down payments
Typical down payments
- Condos: Conventional financing commonly starts around 10 to 20 percent down. Some buyers use FHA or VA loans if the building qualifies, with FHA as low as 3.5 percent.
- Co-ops: Expect higher minimums, often 20 to 25 percent. Some buildings and lenders prefer 25 to 50 percent, especially for investors or buildings with higher underlying debt.
DTI ratios and cash reserves
Co-op boards and lenders often require stronger financials. It is common to show post-closing liquidity that covers several months of mortgage and maintenance. Condos are usually more flexible on reserves, though lender standards still apply.
FHA/VA reality in NYC
- Condos: Some buildings are eligible for FHA/VA. Always confirm building approval.
- Co-ops: Rarely approved for FHA/VA, which limits access to these programs for co-op buyers.
Investor considerations
Condos are generally more investor-friendly because financing is broader and rental rules are typically simpler. Many co-ops limit investor ownership and subletting.
Monthly costs and insurance
What your monthly charges include
- Co-op maintenance: Usually covers the building’s property taxes, any building mortgage, insurance, staff, operations, and reserves.
- Condo carrying costs: You pay monthly common charges for operations and reserves, plus your property taxes separately. Your true monthly cost is common charges plus the tax bill.
Because co-op maintenance often includes taxes and possibly building debt service, it can look higher at first glance. Compare apples to apples by confirming what each fee includes.
Insurance differences
- Co-ops: The building’s master policy covers the structure and common areas. You carry a personal policy for belongings and any interior improvements as defined by the building’s coverage.
- Condos: The master policy covers common elements. You carry an HO-6 policy to insure interior improvements, personal property, and liability.
Assessments and special fees
Both condos and co-ops may levy assessments for major projects or reserves. Many co-ops also have a flip tax payable on sale, typically by the seller, but building documents control the details. Condos may have transfer or recording fees.
Board approvals and rentals
Co-op board approval process
Expect a detailed board package that can include financial statements, tax returns, bank statements, employer and personal references, and more. An interview is common. Boards can require certain down payments, financing limits, and post-closing liquidity. Approval can take weeks and you cannot close until you have it.
Condo approval process
Condos typically require a purchaser application and management review. Approval is more administrative and less discretionary than co-ops, which usually speeds up the process.
Sublets, rentals, and short-term stays
- Co-ops: Often restrict subletting with minimum owner-occupancy periods, limits on total rental time, and board approval. Investor caps are common.
- Condos: Usually allow rentals with building rules and minimum lease terms. Some adopt rental caps, but this is less common than in co-ops.
- Short-term rentals: Many buildings prohibit short stays. New York City also enforces specific rules on short-term rental activity. Always confirm current local regulations and the building’s bylaws before counting on rental income.
Closing timelines in Queens
Typical condo timeline
Condos often close in about 30 to 60 days when financing is straightforward. Steps include attorney review, mortgage commitment, title search, condo document review, appraisal, and closing.
Typical co-op timeline
Co-op closings commonly take 45 to 90 days or longer. The board package can take weeks to prepare, and you must wait for the interview and formal approval before closing.
Documents you will see
- Condos: Purchase contract, offering plan if applicable, bylaws, declaration, estoppel from management, certificate of occupancy where relevant, lender docs.
- Co-ops: Board package, proprietary lease, bylaws, corporation financials, questionnaires, and stock purchase application.
Which option fits you
Scenario A: You need flexibility
If you may relocate again in 2 to 3 years or want the option to rent, a condo usually fits better. You will still confirm rental rules, minimum lease terms, and any rental caps.
Scenario B: You value price efficiency
First-time buyer focused on purchase price and a stable owner community? Many NYC co-ops trade at lower price-per-square-foot than comparable condos. Be ready for stricter approval, higher down payments, and sublet limits.
Scenario C: You plan FHA/VA or low down
Condos that are FHA/VA-approved are more likely to work. Co-op approvals for these programs are rare in NYC, so confirm building eligibility early.
Scenario D: You want investment income
Condos are typically better for investors due to broader financing options and more flexible rental policies. Many co-ops restrict investors and the total time a unit can be rented.
Buyer checklist for tours
- Is it a co-op or condo? Ask for the proprietary lease or the condo declaration and bylaws.
- What do monthly charges include? Clarify taxes, building debt, staff, and reserves.
- Are there underlying mortgages (co-op) or current assessments?
- What are the rental rules, minimum lease lengths, and any investor caps?
- Are short-term rentals allowed or prohibited?
- How strong are the building’s reserves and are any special assessments pending?
- What is the typical timeline for board approval or buyer registration?
- Are there flip taxes, transfer fees, or other sale-related costs?
- For condos: Is the building FHA/VA-approved?
- For co-ops: What are the minimum down payment and post-closing liquidity requirements?
Work with a local advocate
Your choice between a co-op and a condo should match your timeline, financing, and long-term plans. If you are relocating, need VA guidance, or want discreet access to options across Queens neighborhoods, you deserve a clear, no-nonsense plan tailored to you. For concierge buyer representation and a smooth, coordinated process, connect with Lindsey Bergeron.
FAQs
Can a co-op board reject a buyer in Queens?
- Boards have wide discretion, but all anti-discrimination laws still apply. Most boards do not need to give a reason for denial, though unlawful discrimination is prohibited.
Are co-ops always cheaper than condos in NYC?
- Not always, but many co-ops sell at a lower price-per-square-foot than comparable condos. Exact differences depend on location, building quality, and financials.
Which is better for investors, a co-op or a condo?
- Condos are usually better because financing is more flexible and rental policies are generally less restrictive than co-ops.
Can I use FHA or VA financing on a co-op?
- Rarely. FHA/VA loans are more commonly used for condos if the specific building is approved. Always confirm eligibility early.
How long does co-op approval take in Queens?
- Expect several weeks from package submission to decision, plus time to prepare the package. This often makes co-op closings longer than condo closings.
Who pays property taxes in co-ops vs. condos?
- Condo owners pay property taxes directly. In co-ops, the corporation pays the building’s taxes and allocates them to shareholders through monthly maintenance.
