Sometimes, despite your best efforts, it can still be difficult for you to buy a home on your own. But fortunately, you don’t have to go it alone if there’s someone else in your life who can help you. There are three main ways you can get assistance with purchasing in NYC – co-purchasing, gifting and guarantors. Here’s a brief overview of each one.

Co-Purchasing

Co-purchasing is exactly what it sounds like. Someone else buys the apartment with you, so you are both owners of the apartment.

Both of you will have to fill out the purchase application. And if it’s a co-op, you will both have to be present for the board interview.

Make sure whomever you’re purchasing with understands all the information they’ll be expected to provide in connection with the purchase. This is especially important if they themselves have never purchased in NYC and aren’t familiar with the nature of co-ops.

Guarantor

In this case, you are the sole owner of the apartment, but someone else guarantees the payment of the maintenance. This person is known as the “guarantor.” If you don’t keep current with payments, the co-op board or condo association can look to this person for payment.

The rules for each building may vary. But guarantors can expect to still have to fill out at least a part of the application or the entire application as well. However, they probably won’t be asked to attend the board interview.

Gifting

If neither of the above options work for you, you can also be “gifted” the down payment amount. This is often a very popular option since the person giving the gift usually doesn’t have to fill out the purchase application.

The person giving the gift often must present a gift letter or affidavit (also generally required by your lender, if obtaining a mortgage) and information regarding the source of funds (i.e. where their money is coming from).

However, many buildings will still require that you, as the purchaser, qualify on your own in order to proceed. In other words, after the down payment, your debt to income ratio and post closing liquidity must meet their financial qualifications.

And be mindful of when the funds are transferred. Some buyers make the mistake of thinking that as long as the funds are “in” their account by the time they’re ready to start their search, then the money won’t count as a gift. But that’s not necessarily true. So be sure to disclose to your agent if you’ve had any large transfers of money into your accounts.

Some Important Notes

Every building may not permit all of the purchase options above. Some NYC buildings may permit all of the purchasing options, while others will limit you to some combination of co-purchasing, gifting or guarantors. That’s why it’s so important for you to discuss your financial situation with your real estate agent at the very beginning of your search.

Not sure which one is right for you? Talk with your real estate agent and your mortgage broker. Together, you can figure out which solution may work best for your circumstances. Don’t have an agent yet? Then feel free to reach out to me. I’m always happy to help!