Buying a home — New to Brooklyn

Buying in Brooklyn means choosing between three very different kinds of ownership: a share in a co-op, a deeded condo unit, or a whole house. Each comes with its own approval steps, monthly costs and paperwork. This chapter explains the differences neutrally, walks through the process from pre-approval to closing, and points to the official sources for taxes and first-time buyer help. It is general information, not legal, tax or financial advice.

Up to $100,000HomeFirst down payment help for eligible first-time buyers (NYC HPD, as of October 2026)
$732,000HomeFirst price limit for an existing one-unit home in Brooklyn (95% of HUD limits, effective December 2025)
1% at $1M+State 'mansion tax' paid by the buyer on residential purchases of $1 million or more (NYS, as of October 2026)
3 business daysMinimum time to review your Closing Disclosure before you close (CFPB)

Rowhouses lining a residential street in Brooklyn — Suggested photo: a row of brownstones on a quiet Brooklyn block

Co-op, condo or house: what you actually own

In a co-op, you do not own your apartment directly. You buy shares in a corporation that owns the building, and those shares come with a long-term proprietary lease for your unit; monthly maintenance is based on the number of shares attached to it. In a condominium you receive a deed to your unit and pay monthly common charges for shared services, plus property taxes. A house (in Brooklyn, usually a one- to four-family rowhouse, brownstone or detached home) gives you the building and the land, with no building-wide fees but responsibility for every repair.^30,31

Approval also differs. A co-op board interviews applicants and can accept or reject them, while condo purchases generally involve a lighter application. One brokerage guide puts typical minimum down payments at 20% for co-ops and 10% for condos, but individual buildings and lenders set their own rules, so treat those as rough starting points. If you buy a new unit from a developer (a sponsor), the sale follows an offering plan reviewed by the Attorney General's office; most resales have no such plan.^31,32

Co-op, condo and house compared^30,31,33

Feature	Co-op	Condo	House (1-4 family)
What you own	Shares in a corporation plus a proprietary lease	A deeded unit	Building and land
Approval	Board application and interview; board can decline	Lighter process, usually no interview	Lender and seller only
Monthly costs	Maintenance based on your shares	Common charges plus property taxes	Taxes, insurance and all upkeep
Typical minimum down payment (one broker guide)	About 20%	About 10%	Set by lender and loan type
Seller disclosure form	Not required	Not required	Property Condition Disclosure Statement, or a $500 credit
Resale and renting out	Board approval often needed	Usually more flexible	Most flexible; check zoning

Building rules vary widely. Always read the specific building's documents.

For a one- to four-family house, the seller must hand you New York's Property Condition Disclosure Statement before you sign a binding contract; if they do not, you get a $500 credit at closing. The form is not a warranty and does not replace your own inspection, and it does not apply to condo or co-op units.³³

The process, step by step

Start with the money. A pre-approval letter shows sellers and boards that a lender has looked at your finances, but it is not the same as the final loan commitment that comes after underwriting and appraisal. When you apply for a purchase mortgage the lender must give you a Loan Estimate, a standard form designed so you can compare offers side by side, and later a Closing Disclosure that you can check against it. Comparing several Loan Estimates is the simplest way to see real differences in cost.^29,34,35

Step 1: Get ready
Check your credit, savings and monthly budget. Compare lenders using the standard Loan Estimate form, and get a pre-approval letter. If you plan to use first-time buyer help, complete any required homebuyer education course first.
Step 2: Search and offer
Tour listings, then make an offer through your agent. Ask about monthly charges, assessments and recent repairs, not just the price.
Step 3: Attorney and contract
Have a real estate attorney review the contract before you sign. The Attorney General specifically advises this for purchases from a sponsor, where the offering plan governs what you are promised.
Step 4: Board package (co-ops)
Assemble the application, finances and references. Preparation often takes weeks, and review plus interview adds more.
Step 5: Mortgage, appraisal, title
The lender underwrites the loan and orders an appraisal; a title search checks for liens or defects, and title insurance covers what the search misses.
Step 6: Closing
You receive a Closing Disclosure at least three business days before closing. Review it, bring certified funds or send a verified wire, sign, and receive the keys once the deed or shares are transferred.

In Brooklyn, mortgages and deeds are recorded with the New York City Register's Office, which collects the mortgage recording tax in every borough except Staten Island. The person filing must supply correct tax information and any exemption claims, and the city's ACRIS system includes a tool for estimating the tax.³⁸

Co-op board package: what to prepare

Requirements differ by building, so follow the managing agent's checklist exactly and leave nothing blank. A lender's commitment letter, issued after underwriting and appraisal, is different from a pre-approval, and some boards want the commitment letter. Plan for roughly a month of preparation, then one to three weeks of board review, an interview, and a decision one to two weeks later.^35,36

Cover letter introducing you, your income and why you want the building
Photo ID and the building's application form
Two to three years of tax returns, W-2s and recent pay stubs
Two to three months of bank, brokerage and retirement statements
Employer letter confirming your position and pay
Personal and professional references, plus a landlord or managing agent letter
Lender commitment letter (if financing) and proof of homeowner's insurance
Application fee and any signed acknowledgments the building asks for

Closing costs: the main categories

Budget for closing costs on top of your down payment. Some are taxes set by New York State or City; others are fees from your lender, attorney and title company. The table below covers the main taxes; rates below were verified in October 2026 and can change, so confirm on the official pages before you rely on them.^28,39

Main New York taxes on a Brooklyn purchase (as of October 2026)^{28,40,39,41,42,38}

Tax	Rate or threshold	Usually owed by	Notes
State 'mansion tax'	1% of price when a residential sale is $1 million or more	Buyer	Applies to residences; buyer pays under the state rules
NYC supplemental tax	0.25% for $2M to under $3M, 0.5% for $3M to under $5M, 1.25% for $5M to under $10M, rising to 2.9% at $25M or more	Buyer	Added on top of the state 1%; none below $2M
State transfer tax	$2 per $500 of price (0.4%)	Seller	Buyer is liable if the seller does not pay
NYC transfer tax (RPTT)	1% up to $500,000; 1.425% above (1-3 family homes, condo units, co-op apartments)	Shown in closing costs	City page does not name the payer; ask your attorney what your contract says
NYC additional base tax	0.25% on residential sales of $3 million or more	Seller	Does not affect most Brooklyn sales
Mortgage recording tax (Kings County)	About 2.05% of loans under $500,000; about 2.175% of 1-3 family and condo loans of $500,000 or more	Borrower's share appears on your Closing Disclosure	First $10,000 is deducted for one- or two-family homes; use the ACRIS calculator for exact amounts

Mortgage tax figures are the combined state and city rates per $100 of loan in the Department's rate table.

Other common costs include your attorney, the lender's fees and appraisal, an inspection, title insurance, and recording fees. In New York the buyer is generally responsible for both the owner's and the lender's title policies, and buying them at the same time cuts the lender's policy to 30% of its rate. Co-op and condo buyers may also face application, move-in and prepaid charges set by the building, and the Closing Disclosure lists estimated taxes, insurance and assessments.^37,36,34

Help for first-time buyers

Several public programmes lower the cash needed at purchase. Each has its own definition of a first-time buyer, income cap and property limits, and funding or intake can pause, so speak to an approved housing counselling agency before you start house hunting.^27,43

Counselling comes first. HomeFirst applicants must complete a homebuyer education course and the loan application with an HPD-approved housing counselling agency, and SONYMA also requires an education course. Doing the course early avoids delays; one report says the certificate stays valid for up to a year, so time it close to when you expect to buy.^27,43,44

First-time buyer programmes (as of October 2026)^{27,45,46,47,43,48}

Programme	What it offers	Main limits	Where to confirm
NYC HPD HomeFirst	Up to $100,000 for a down payment or closing costs on a 1-4 family home, condo or co-op in the five boroughs	Income up to 120% of area median (for example $142,560 for one person, $203,520 for four, effective June 2026); at least 3% of the price from your own savings; education course; inspection; 10 to 15 years of owner-occupancy; Brooklyn existing one-unit price limit $732,000	HPD HomeFirst page
SONYMA Achieving the Dream	30-year fixed-rate loan with 3% down payment assistance; down payment as low as 3%	Kings County income limit $162,810 (1-2 people) or $189,950 (3 or more); one-family price limit $1,306,970, or $1,597,410 in target areas; reservations from July 6, 2026	HCR SONYMA pages
SONYMA Low Interest Rate	30-year fixed rate, no points, no prepayment penalty	First-time buyer rule (veterans and target areas excepted); education course; verifiable funds of 1% of price (3% for co-ops); mortgage insurance under 20% down	HCR SONYMA pages
SONYMA add-ons	Zero-interest down payment assistance loan and a repayable second lien that can be combined with a SONYMA mortgage	Amounts and terms are on the SONYMA site or by phone with SONYMA	HCR SONYMA pages

Program rules, limits and funding change. The HPD page does not say whether HomeFirst is currently accepting applications, so check with an HPD-approved counselling agency.

HomeFirst was expanded in January 2025, raising the income ceiling from 80% to 120% of area median income. The loan is forgivable if you stay in the home for the required period; selling or moving out early may mean repaying part of it. Asking a counsellor how each programme defines first-time buyer is worthwhile, because the definitions differ.^45,44

Pitfalls to avoid

Most problems come from rushing or from trusting a single document. The Attorney General recommends reading an offering plan in full, reviewing board minutes, financial reports and posted violations in existing buildings, and putting any important sponsor promises in writing.³²

Skipping the inspection. Disclosure forms are not warranties, and the Attorney General lists facade, roof, elevator, plumbing, electrical and boiler work as costly building problems to investigate.
Ignoring the building's finances. For co-ops and condos, read board minutes, financial statements and any posted violations before you sign.
Signing before an attorney reads the contract or the offering plan.
Letting a pre-approval or lender commitment expire while a board reviews your package.
Waiting until closing day to question the Closing Disclosure, when the three-day review window is the time to fix problems.

Buyer's checklist

Decide between co-op, condo and house, and read the building's documents or disclosure form
Check HomeFirst and SONYMA eligibility and book homebuyer education if needed
Compare Loan Estimates from several lenders and get a pre-approval
Hire a real estate attorney before making or signing an offer
Budget for taxes, title insurance, attorney and lender fees, not just the down payment
For co-ops, collect the board package and track your commitment-letter expiry
Order an inspection and review any seller disclosure
Save your attorney's and agent's phone numbers for wire verification
Compare the Closing Disclosure with your Loan Estimate within the three-day window
Confirm every rate and threshold on the official tax and housing pages