Financing in New York>Question Details

Roisinohare, Home Buyer in Brooklyn, NY

How much of a deposit is needed to buy a 550k 2 family home (to live in as well as rent out a floor) in NYC? What other costs will be involved? Thayes

Asked by Roisinohare, Brooklyn, NY Wed Mar 6, 2013

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You have the option to do FHA which only requires a 3.5% down payment. In addition, you'll also need money for closing costs. FHA allows up to a 6% seller's concession, which means that you can ask the seller to include up to 6% of the purchase price to be gifted to you for closing costs. This will minimize the cash you need to purchase your home. Also have conventional loans, they'll require a 20% down payment. If you have this type of money, conventional might turn out to be the more economical option.

I strongly recommend you meet face-to-face with a local Loan Officer and allow him/her to pre-approve you. By reviewing your credit report and all other necessary documents, we would be able to determine just how much you qualify for, more or less what you can expect the monthly payments to be and also go over the entire process to that you have a full understanding of how it'll all work. This is also a good time to get answers to all your questions.

I'm always available to meet in our Brooklyn offices, if you're looking for a loan officer to work with. Good luck!

Javier Meneses
Senior Loan Officer
NMLS #23130
310 Crossways Park Drive
Woodbury, NY 11797
(516) 606-9648
2 votes Thank Flag Link Wed Mar 6, 2013
FHA Loans are only require a 3.5% downpayment. You need to consider the costs involved with creating a separate unit within your property as well. A vital factor is also that you will need to build a completely separate kitchen for the tenant as well. If good idea is to purchase a multi-family home in your chose area and occupy the basement, which makes for a better investment.
0 votes Thank Flag Link Thu Mar 14, 2013
hi you cant really pay much deposit to buy a 550k 2 family home cos i got a better one for you...all you need is right
0 votes Thank Flag Link Wed Mar 6, 2013
You will need a minimum of 3.5% down with an FHA loan and you can possibly finance all of your closing costs with a sellers concession. The other option is a conventional loan where you will need 20% down and money for closing costs, which will be abound 4-5% of the loan amount. You will also need money for your home inspection, appraisal, attorney and homeowners insurance.

Mark S. Fisher
(347) 242-1206
0 votes Thank Flag Link Wed Mar 6, 2013
If you do an FHA loan you can put down 3.5% otherwise you typically need 20% and 6 months reserves in the bank for conventional financing. Speak with your loan officer directly to get the most accurate info based on your financial situation etc.

0 votes Thank Flag Link Wed Mar 6, 2013
It will depend on the type of loan and what the lender requires, they should be telling you. 5%, 10% or 20% are the common down payments.
0 votes Thank Flag Link Wed Mar 6, 2013
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