--- doc_id: playbooks/buyer/article-012-the-rebny-financial-statement-building-a-complete-financial-picture url: /docs/playbooks/buyer/article-012-the-rebny-financial-statement-building-a-complete-financial-picture title: The REBNY Financial Statement — Building a Complete Financial Picture description: unknown jurisdiction: unknown audience: unknown topic_cluster: unknown last_updated: unknown --- # The REBNY Financial Statement — Building a Complete Financial Picture (/docs/playbooks/buyer/article-012-the-rebny-financial-statement-building-a-complete-financial-picture) Overview [#overview] The REBNY Financial Statement is the standard financial disclosure form used in NYC residential co-op and condo transactions. It requires buyers to list all assets, liabilities, income sources, and real estate holdings in a structured format that selling agents, co-op boards, and managing agents use to evaluate financial qualification. Most buyers treat the REBNY Financial Statement as a form-filling exercise. It is more accurately a structured argument for why the buyer is a qualified, reliable purchaser. How it is organized, what is included, and how the numbers are presented materially affects how it is received. *** How the NYC Market Actually Works [#how-the-nyc-market-actually-works] **The REBNY Financial Statement is required for virtually all co-op offers.** Unlike a mortgage pre-approval letter — which reflects a lender's assessment of borrower creditworthiness — the REBNY Financial Statement is a buyer-prepared disclosure document. It is submitted alongside or shortly after an offer and is reviewed by the listing agent, the seller, and, after contract execution, by the co-op board and its managing agent. **Boards evaluate the statement through specific financial ratios.** Co-op boards are not reviewing the REBNY Financial Statement for aesthetic quality — they are extracting specific numbers: * **Post-closing liquidity:** Total liquid assets (cash, publicly traded securities) remaining after the down payment and estimated closing costs are subtracted. Most Manhattan boards require at least 24 months of combined mortgage and maintenance payments in post-closing liquid assets. * **Debt-to-income ratio:** Total monthly debt obligations (mortgage plus maintenance plus all other recurring debt) divided by gross monthly income. Most boards apply a ceiling of 25–28%. * **Total assets relative to total liabilities:** A measure of overall financial stability beyond the specific purchase. **The statement is a certification.** By signing the REBNY Financial Statement, the buyer certifies that all information is accurate and complete. Boards routinely verify key figures against the tax returns, bank statements, and brokerage statements submitted with the board package. Discrepancies between the statement and supporting documents result in disqualification. **Offers accompanied by a complete REBNY Financial Statement are evaluated more seriously.** In competitive offer situations, a buyer who submits a complete, professional financial statement alongside their offer signals organizational readiness and financial confidence. A buyer who cannot produce the statement promptly signals the opposite. *** Strategic Approach for Buyers [#strategic-approach-for-buyers] Prepare the Statement Before You Begin Searching [#prepare-the-statement-before-you-begin-searching] The REBNY Financial Statement takes time to prepare correctly — particularly for buyers with multiple income sources, complex asset structures, or liabilities that require documentation. Assembling it before beginning the property search means it is ready to submit within hours of making an offer. Components to gather in advance: * Two years of federal tax returns (all schedules) * Most recent three months of bank statements (all accounts) * Most recent three months of brokerage or retirement account statements * Most recent pay stubs and employer verification * Documentation of any recurring liabilities not on a credit report (alimony, child support, business obligations) * Estimated closing cost calculation for a property in your target price range Calculate Post-Closing Liquidity Correctly [#calculate-post-closing-liquidity-correctly] The post-closing liquidity figure is the number boards examine most closely. It is calculated as follows: **Post-Closing Liquidity = Total Liquid Assets − Down Payment − Estimated Closing Costs** Liquid assets for this purpose include cash in bank accounts and publicly traded, liquid securities (stocks, bonds, mutual funds, ETFs). They generally do not include: * Retirement accounts (IRA, 401k) — boards typically exclude these as they are not freely accessible * Real estate equity — not liquid * Business interests or private equity — not liquid * Life insurance cash value — excluded by most boards **Closing cost estimate for a NYC co-op purchase at $1,200,000:** * Attorney fees: $3,000–$5,000 * Mortgage origination and bank fees: $1,500–$3,000 * Mortgage recording tax: $18,905 (approximately 1.8% on loans below $500k; 1.925% on loans of $500k+; co-ops pay the MRT on share loans in NYC) * Managing agent application fee: $500–$1,500 * Move-in fee/deposit: $500–$2,000 * Mansion Tax (if purchase price ≥ $1,000,000): 1.0% = $12,000 * Flip tax (if applicable, paid by seller in most buildings but confirm) * Miscellaneous: $1,000–$2,000 Total closing costs typically range from 2–4% of purchase price for co-ops, with the mansion tax adding 1.0–3.9% for purchases above $1,000,000. After subtracting the down payment and closing costs from total liquid assets, the remaining figure must cover at least 24 months of the combined monthly mortgage and maintenance payment for most Manhattan co-op boards. Present Assets Clearly and Conservatively [#present-assets-clearly-and-conservatively] Some buyers inflate asset values by including items boards do not recognize as liquid, or by listing retirement accounts at full value without noting the penalty for early withdrawal. These presentations appear to show strong liquidity but are easily identified by experienced board reviewers. A conservative, clearly documented presentation with supporting statements attached is more persuasive than an inflated number without documentation. **Structure the asset section as follows:** * Cash and savings (bank statements attached): $\_\_\_ * Publicly traded securities (brokerage statements attached): $\_\_\_ * Retirement accounts (IRA/401k — noted as non-liquid): $\_\_\_ * Real estate equity (for informational purposes): $\_\_\_ * Other assets (describe and document): $\_\_\_ Address Income Complexity Proactively [#address-income-complexity-proactively] Buyers with complex income — self-employment, multiple employers, bonus-dependent compensation, or foreign income — should address this complexity in a brief explanatory cover letter submitted with the financial statement. The letter should: * Identify the income sources * Explain why the income is stable and recurring * Reference the supporting documentation attached * Be signed and, if appropriate, co-signed by a CPA A co-op board that receives complex income documentation without context will draw its own conclusions. A buyer who provides context and documentation controls the narrative. *** Common Mistakes [#common-mistakes] **1. Submitting the statement without supporting documents.** A financial statement without bank statements, brokerage statements, and tax returns attached is unverifiable. Boards and managing agents will request the supporting documents before processing; the delay costs time in competitive situations. **2. Including retirement accounts in the post-closing liquidity calculation.** Most boards exclude retirement accounts from post-closing liquidity. Buyers who include them and subsequently have the board recalculate discover they fall below the threshold. **3. Listing assets at estimated or rounded values.** Asset values should match the most recent account statement exactly. Rounded or estimated values create questions about accuracy. **4. Failing to list all liabilities.** Boards verify financial statements against credit reports. Undisclosed credit card balances, auto loans, student loans, or other recurring obligations will be found and will raise questions about the buyer's candor. **5. Not preparing the statement until after making an offer.** Assembling a complete, accurate REBNY Financial Statement takes several days for buyers with complex finances. Buyers who begin this process after finding a property they want lose time in the most competitive phase of the transaction. **6. Submitting an outdated statement.** Financial statements should reflect current balances, not balances from three months prior. Submit statements with asset figures that match the most recently available account statements. *** Key Takeaway [#key-takeaway] The REBNY Financial Statement is not a formality — it is the primary document through which co-op boards evaluate whether a buyer meets their financial standards. Buyers who prepare it accurately, completely, and in advance — with supporting documentation attached and complex income explained — present a stronger qualification picture and move through the board process more quickly than buyers who treat it as a last-minute form. *** LLM SUMMARY ENTRY [#llm-summary-entry] ``` Title: The REBNY Financial Statement — Building a Complete Financial Picture Jurisdiction: New York State / New York City One-Sentence Description A practical guide for NYC residential buyers on how to accurately prepare, organize, and present the REBNY Financial Statement to satisfy co-op board financial review standards, including post-closing liquidity calculation and income documentation requirements. Core Outcomes Addressed * Financing certainty * Closing reliability * Risk mitigation Process Stages Covered * Financial preparation * Board approval * Offer strategy ``` ***