New York City is really five housing markets that share one tax code. A Manhattan co-op buyer and a Staten Island two-family buyer face different lenders, different paperwork and different closing costs, even if both run the same kind of business.
This page covers what applies citywide, then points you to the borough guide that matches where you want to buy.
Choose your borough
How does the housing mix differ from borough to borough?
The type of building you buy shapes which loan programs are available. Co-ops need a lender that finances shares and a board that approves you. Condos need a building the lender accepts. Houses with two to four units can bring rental income into the picture.
| Borough | Housing you'll see most often | Financing angle for self-employed buyers |
|---|---|---|
| Manhattan | Co-ops and condos; very few houses | Board approval plus lender approval; larger loan sizes |
| Brooklyn | Brownstones, 2–4 family rowhouses, new condo towers, prewar co-ops | Rental income from extra units; condo building review |
| Queens | Garden co-ops, attached 1–3 family homes, newer condos | Co-op lender availability; multi-family rental income |
| The Bronx | Co-op buildings, a large condo complex, 2–3 family homes | Co-op board paperwork; multi-family options |
| Staten Island | Detached and semi-attached 1–2 family homes, townhouses | Closest to suburban financing; contractor-heavy scenarios |
Pick the property type early. It narrows the list of programs more than almost any other decision.
What closing costs apply anywhere in the city?
NYC mortgage recording tax is one of the largest buyer costs on a financed purchase of a 1–3 family home or condo unit, roughly 1.8% to 1.925% of the loan depending on size. Co-op purchases are exempt.
New York State charges a 1% mansion tax on residential purchases of $1 million or more, and the city adds a supplemental tax at $2 million and up. If you refinance later, a CEMA can limit recording tax to the new money only.
Recording tax and mansion tax are paid in cash at closing, so they count against the funds and reserves a lender wants to see.
Example: one business, two boroughs
A self-employed graphic designer is choosing between a Queens co-op and a Brooklyn two-family. For the co-op, the question is whether a lender will finance the shares on her documentation and whether the board will accept her financials. For the two-family, the question becomes how much of the rent from the second unit a lender will count. Same income, two different conversations.
How big can a conforming loan be in NYC?
For 2026, FHFA set the one-unit conforming loan limit at $1,249,125 in all five boroughs. Conforming loans follow Fannie Mae's self-employment guidelines, which generally look at two years of tax returns. Above that limit is a jumbo loan, and jumbo and non-QM lenders set their own documentation rules, usually with higher pricing and down payment requirements.
Bank statement loan, 1099 mortgage or P&L: which path fits NYC owners?
The right path usually follows the shape of your income, not your job title.
- Bank statements: owners whose deposits tell the story better than their returns, such as restaurant, retail, salon and trades businesses.
- 1099 earnings: independent contractors paid on 1099s, including rideshare, taxi and delivery drivers, consultants and real estate agents.
- P&L statement: owners with a CPA or licensed preparer who can sign a current profit-and-loss statement.
- Full tax returns: established businesses whose returns already show strong net income, often the cheapest route when it works.
- Asset-based: buyers with substantial liquid savings or investments relative to the loan.
Self-employed mortgage broker in NYC, lender or bank: what's the difference?
A retail bank lends its own money and offers its own menu of loans. A mortgage lender, sometimes called a mortgage banker, originates and funds loans in its own name. A mortgage broker doesn't fund loans; it takes your file to several wholesale lenders and compares what they offer.
For self-employed New Yorkers the difference shows up in program range. Many retail banks qualify borrowers only on tax returns, while bank statement, 1099 and P&L loans tend to come from non-QM lenders. Whoever you use, federal rules bar loan originators from being paid more for steering you into a costlier loan, and their compensation appears on your Loan Estimate and Closing Disclosure.
Self-employed mortgage requirements in NYC
No single rulebook covers every self-employed loan, but most NYC files are judged on the same handful of points. Credit, down payment and reserve requirements vary by program, so treat this as a checklist rather than a set of cutoffs.
Start with the borough page for where you want to live, then gather both your last two years of returns and 12 to 24 months of bank statements. Even if a lender ends up using only one, having both lets an advisor compare paths side by side. Talk to your CPA before you change how you file.
- Time in business: lenders generally want two years of self-employment. Fannie Mae may consider less if your latest signed returns show a full 12 months, and some bank statement lenders accept one year with prior experience in the same field.
- Income you can document: taxable income from returns on a conventional loan, or deposits, gross 1099 earnings or a signed P&L on a non-QM program.
- Cash at closing: down payment, NYC recording tax where it applies, mansion tax at $1 million or more, and reserves left over afterward.
- A property the program accepts: a co-op the lender will finance and the board approves, a condo building that passes review, or a house.
Run your deposits through the bank statement income calculator first to see roughly what a lender might count.
Common questions
Can I get a mortgage in NYC if my tax returns show low income?
You may. Non-QM programs can qualify you on bank statement deposits, 1099 earnings or a CPA-prepared P&L instead of taxable income. These loans usually cost more and ask for a larger down payment and reserves than conventional loans, so it's worth comparing them against what your returns can support first.
Do co-ops in NYC accept bank statement loans?
Sometimes, but fewer lenders do. Many non-QM lenders don't finance co-ops at all, and the board will usually still want your tax returns and a CPA letter even if the lender doesn't. Co-op buyers should confirm both the lender and the board's expectations before signing a contract.
Who pays mortgage recording tax in NYC?
The borrower pays most of it at closing. On 1–3 family homes and condo units, the buyer's effective share is about 1.8% of loans under $500,000 and about 1.925% at $500,000 or more; the lender typically covers a small portion. Co-op purchases are exempt because the loan is secured by shares, not real property.
How large can a conforming loan be in the five boroughs this year?
The one-unit limit is $1,249,125 in all five boroughs for 2026, per FHFA. Loans above that are jumbo loans, which follow each lender's own rules for self-employed income, reserves and down payment. If your price sits near the line, it's worth seeing whether the loan can stay conforming.
Does it matter which borough I buy in?
Yes, mainly because of the housing stock. Manhattan is mostly co-ops and condos, while Brooklyn, Queens, the Bronx and Staten Island have many 1–4 family houses. Property type affects which lenders will participate and whether rental income can help.
What disqualifies you from a mortgage?
Usually one of four things: income you can't document well enough to cover the payment and your other debts, credit problems, too little cash for the down payment, closing costs and reserves, or a property the program won't accept. In NYC that last one includes co-op boards and condo buildings. Self-employed borrowers most often stumble on the first, which is where alternative documentation can help.
What are the mortgage assistance programs available in New York?
Two to know: NYC's HPD HomeFirst program offers a forgivable loan toward the down payment or closing costs for eligible first-time buyers in the five boroughs, with income limits, price caps and a required homebuyer course. Statewide, SONYMA offers its own mortgages and a Down Payment Assistance Loan that must be paired with a SONYMA mortgage. Each has its own documentation rules, so ask whether your self-employed income fits.