During a consultation, a buyer preparing a pre-approval discovered that the conventional loan limit would not cover the properties they were interested in. This situation is not uncommon in Manhattan. According to recent data from Leadpin for the last three months (as of July 2026), the median sale price of homes in Manhattan is around $1.4 million, which is a 5.7% increase from the previous year. Based on StreetEasy, the median asking price has risen to $1.5 million, reflecting a 5.2% increase compared to last year. The difference between these two figures is due to the disparity between sale prices and asking prices, as well as the timing of the data collection.

In simpler terms, this means that most properties in Manhattan exceed the limits of conventional loans. The five boroughs of New York City (Bronx, Brooklyn, Manhattan, Queens, Staten Island) are classified as high-cost areas by the Federal Housing Finance Agency (FHFA), with a core loan limit of $1,209,750 for 2026, which is higher than the national baseline of $832,750 (FHFA, 2026 announcement). However, the median price in Manhattan often surpasses even this limit. At this point, buyers must turn to jumbo loans, which typically have higher credit score requirements (usually above 700) and often require down payments of 10-20%.

There are also points of division between condos and co-ops, even with the same budget. Co-ops have an approval process from the building's board, and the financial scrutiny can be more stringent than that of conventional loan approvals. Therefore, it is advisable to clarify that the required documents and time may vary depending on whether the buyer is looking at condos or co-ops during the pre-approval stage.

For first-time homebuyers seeking relatively lower-priced properties, FHA loans are still worth considering. If the credit score is above 580, they can start with a 3.5% down payment, but in Manhattan, the number of buildings eligible for FHA approval (including co-ops) is often limited, so it is essential to check this aspect when selecting properties.

For families newly arriving from Korea and trying to settle in New York, having a short credit history can be a barrier to securing conventional loan approvals. In such cases, increasing the down payment or preparing alternative documentation (such as rental payment history) can be helpful. Families moving from other states should also be cautious, as estimating New York's tax burden based on property or income taxes from their previous residence can lead to significant discrepancies.

When comparing uptown and downtown, similar trends emerge. Areas with good school reputations, like the Upper West Side and Upper East Side, tend to have a higher proportion of co-ops, making the loan approval process more challenging. Conversely, areas with many new condos often have relatively easier approvals for conventional or jumbo loans. It is advisable to be aware that the required documents and time may vary depending on the area being considered, even with the same budget.

Buyers with military service experience can also consider VA loans, but in Manhattan, there are not many co-op buildings that accept VA loans, so it is common to narrow down the search primarily to condos. Investors looking for rental income should also consider that Manhattan's rental yields are often lower than in other boroughs. However, it cannot be assumed that prices will continue to rise, so risks should also be assessed. Families moving from other states should pay particular attention to the fact that New York City's income and property tax structures differ significantly from those of their previous residences. New York City is one of the few cities that imposes a separate city income tax, and failing to account for this when calculating monthly repayment capacity can lead to budget discrepancies.

Ultimately, it is realistic to accept that jumbo loans are not the exception but rather the norm in Manhattan, and from there, to consider condos, co-ops, and the possibility of FHA loans. Specific conditions may vary by building and lending institution, so it is advisable to consult with a loan officer before making an offer. This is not investment or legal advice, and it is recommended to seek professional consultation before finalizing any contracts.