If you are buying a condo, the board approval is when the condo board waives their “right of first refusal,” which allows them to buy the condo from the seller at the same price you agreed to buy it. Once it’s waived, you are free to buy the condo and occupy it. Getting a condo board approval is relatively easy.
The Board Approval Process
Debt-to-Income Ratio Example:
Debt: $7,000 per month
Income: $300,000 per year or $25,000 per month
DTI = $7,000 / $25,000 = 28%
When And How Can You Avoid Board Approval Process In NYC?
You can still avoid board approval by:
- Buying a sponsor apartment in an established condominium building
- Buying new development
For co-ops, there is just one way to avoid board approval: Buying a sponsor unit. Sponsors or original owners of a co-op apartment have the authority to sell their apartment without going through the board, so buyers skip the whole board approval process. However, not every board is strict and sometimes you can find co-ops that have a very easy application process and turnaround time.