A
- Adjustable Rate Mortgage (ARM)
- A mortgage with an interest rate that resets after a fixed initial period (typically 5, 7, or 10 years). Common form: 7/1 ARM (7 years fixed, then resets annually). Risky in rising-rate environments. Most NY first-time buyers should use 30-year fixed instead.
- Attorney (NY)
- Required in every NY residential transaction (buyer + seller each have their own; NY uses lawyers, not title companies, to handle closings). Typical fee: $1,500–$3,500. They review contract, negotiate riders, manage closing.
B
- Board Package
- The financial + reference documents NYC co-op buyers submit to the building's board for approval. Includes tax returns, pay stubs, bank statements, reference letters, application form. Takes 4–8 weeks. Full Queens guide.
- Buydown
- Paying upfront points to lower the mortgage rate. Common formats: 2-1 buydown (2% off year 1, 1% off year 2). Sellers sometimes offer buydown as concession instead of price drop.
- Buyer-Broker Agreement
- Written contract between buyer and their agent, required since the August 2024 NAR settlement before any MLS-listed property tour. Sets the buyer-side commission and any retainer. Negotiable.
C
- CMA (Comparative Market Analysis)
- Pricing report that compares your home (or one you want to buy) to recent comparable sales within 0.25 mi over the last 90 days, adjusted for square footage, lot size, condition. We do free CMAs at (917) 705-0132.
- Co-op (Cooperative)
- NYC ownership structure where you own shares in a corporation that owns the building, plus a "proprietary lease" on your unit — not the unit itself. Common in Forest Hills, Rego Park, Kew Gardens, Upper East Side. Requires board approval. Stricter than condos.
- Condo (Condominium)
- Standard ownership of an individual unit + share of common areas. Easier to finance and resell than co-ops. More expensive per sqft. Newer NYC inventory tilts heavily condo.
- Condop
- NYC hybrid: technically a co-op but operates like a condo (no board approval, easier to finance). Most are in mid-century Manhattan buildings. Sometimes confusingly priced.
D
- DTI (Debt-to-Income Ratio)
- Total monthly debt payments ÷ gross monthly income. FHA limit ~57%; conventional ~45–50%; co-op boards often want 28% front-end / 36% back-end. Lower = stronger application.
- Down Payment
- Cash paid upfront. FHA: 3.5% (580+ credit). Conventional: 3% minimum (HomeReady), 5–20% typical. VA: 0%. Jumbo: 10–20%. SONYMA can grant up to $15K toward down payment for first-time NY buyers.
E
- Earnest Money Deposit
- Good-faith deposit from buyer when going under contract. Typically 10% of purchase price in NY (vs. 1–3% in most US markets). Held in attorney's escrow account.
- Escrow
- Neutral third-party account holding funds during a transaction (earnest money, closing funds, ongoing tax/insurance reserves).
F
- FHA Loan
- Federally-insured mortgage. 3.5% down at 580+ credit (10% down at 500–579). Has mortgage insurance (MIP) for the life of the loan. Excellent first-time and lower-credit option. Most NYC condos and co-ops have FHA approval limits — pre-qualify the building.
- Flip Tax
- NYC co-op transfer fee paid by seller (or buyer; varies by building) — typically 1–3% of sale price. Goes to the building, not the city. Always disclosed in the offering plan.
H
- HOA (Homeowners Association)
- Common in suburban communities (some Long Island developments). Monthly fees cover shared amenities. NYC condos use "common charges"; co-ops use "maintenance."
- HomeReady
- Fannie Mae conventional loan program for low-to-moderate income buyers. 3% down, lower mortgage insurance than standard conventional. Stacks well with SONYMA.
I
- IDX (Internet Data Exchange)
- System that lets brokerages display MLS listings on their websites. Our IDX search at homes.gadurarealestate.com.
- In-Contract
- NY status meaning a fully-executed contract has been signed by both parties. Does NOT mean closed — closing typically happens 30–90 days later.
L
- Land Lease
- NYC co-op buildings sometimes own only the building, not the land underneath. The "ground lease" reset can dramatically affect maintenance fees. Always check expiration dates.
- LLC (Limited Liability Company)
- Common ownership structure for NY investment property. Provides liability protection. NY requires LLC formation + EIN. Many NYC condos prohibit LLC purchases.
M
- Mansion Tax (NY State)
- State tax on residential sales over $1M. Tiered: 1% ($1M–$2M), 1.25% ($2M–$3M), up to 3.9% (>$25M). Paid by buyer. Stacks on top of NYC RPTT in NYC.
- MLS (Multiple Listing Service)
- Broker-shared database of for-sale listings. NY metro uses OneKey® MLS (covers Queens, Brooklyn, Long Island, Westchester, Manhattan partially). Required to access broad inventory.
- Mortgage Recording Tax (NY)
- NY tax of 1.8–1.925% on the mortgage amount (not sale price). Paid by buyer. Reducible via "CEMA" (Consolidation, Extension, and Modification Agreement) at refi or assumption.
N
- NAP (Name, Address, Phone)
- Marketing term for the consistent business identification across directories. Critical for local SEO. Inconsistencies hurt visibility on Google + AI engines.
- NAR Settlement (2024)
- Class-action settlement effective August 17, 2024. Eliminated mandatory seller-paid buyer-broker compensation in MLS. Now requires written buyer-broker agreements before MLS tours. Made commission negotiability explicit.
O
- Owner-Occupant
- Buyer who will live in the property as primary residence. Eligible for FHA, SONYMA, HomeReady. Multi-family owner-occupants must occupy one unit for at least 12 months on FHA.
- OneKey® MLS
- The MLS for the NY metro area covering Queens, Brooklyn, Bronx, Long Island, Westchester. Replaced the legacy LIBOR/MLSLI/HGAR systems in 2018. We're an IDX participant.
P
- Pre-Approval
- Lender's conditional commitment to lend, subject to property appraisal + final underwriting. Stronger than pre-qualification (which is just a soft estimate). Always shop 2–3 lenders.
- PMI (Private Mortgage Insurance)
- Required on conventional loans with <20% down. Drops off automatically at 78% LTV. FHA's equivalent (MIP) does NOT drop off — must refinance to remove.
R
- Rider
- Negotiated addition to a NY contract. Common riders: financing contingency, inspection contingency, mortgage contingency, attorney-review.
- RPTT (Real Property Transfer Tax — NYC)
- NYC tax on residential sales: 1% under $500K, 1.425% above $500K. Paid by seller in NYC (varies in some Long Island towns). Stacks with NY State transfer tax.
S
- Short Sale
- Sale where lender accepts less than what's owed on the mortgage. Used when seller is underwater. Requires lender approval. Long process (4–9 months). Queens guide.
- SONYMA (State of New York Mortgage Agency)
- State-sponsored mortgage program with below-market rates and up to $15K Down Payment Assistance Loan (DPAL). Eligibility: first-time buyer, income limits by county, purchase-price limits. Stacks with FHA. Excellent for NY first-time buyers.
T
- TIC (Tenancy in Common)
- Co-ownership structure where each owner has separate, transferable share. Different from joint tenancy (which has right of survivorship). Used in family co-ownership.
- Title Insurance
- One-time premium protecting buyer/lender against title defects. Required by lenders. Cost ~0.5–1% of sale price in NY. Owner's title separate from lender's title.
- Transfer Tax (NY State)
- $2 per $500 of sale price = 0.4%. Paid by seller in residential transactions. Separate from NYC RPTT (which stacks on top in NYC).
V
- VA Loan
- Veterans Affairs mortgage. 0% down, no PMI for eligible veterans. Funding fee 1.4–3.6% (waived for disability-rated vets). Excellent option for NY veteran buyers.
Numbers
- 1031 Exchange
- IRS Section 1031 "like-kind exchange" — defer capital gains tax by rolling sale proceeds from one investment property into another within strict timelines: 45 days to identify, 180 days to close. Requires Qualified Intermediary. Queens 1031 guide.