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Understanding guarantor requirements for co-op and condo applications.
Some board applications require a guarantor—a creditworthy individual who agrees to be responsible for the applicant's financial obligations if they default.
This page provides information for individuals who have been asked to serve as guarantors for purchase or sublet applications in buildings we manage.
Serving as a guarantor is a serious financial commitment. You should consult with a financial advisor or attorney before agreeing to guarantee someone's housing obligations.
Requirements may vary by building. The applicant will receive a complete checklist.
A guarantor is a third party (usually a family member) who agrees to be financially responsible for maintenance/common charge payments and other obligations if the purchaser or subtenant fails to pay.
A guarantor may be required when the applicant's financial profile doesn't meet the building's typical requirements, such as insufficient income ratio, limited assets, or non-traditional employment.
Guarantors are typically immediate family members (parents, grandparents, siblings) with strong financial profiles. Most buildings require guarantors to demonstrate income and assets significantly above the applicant's obligations.
Requirements vary by building, but guarantors generally need to show income that is 80-100x the monthly maintenance/common charges and liquid assets of 1-2 years of carrying costs, in addition to any requirements related to the purchaser.
Guarantor release policies vary by building. Some allow release after a period of on-time payments or when the resident's financial situation improves sufficiently. Check with your property manager.
Contact our transfer department for specific questions about guarantor requirements for a particular application.
