Financing in Brooklyn>Question Details

Mike, Home Buyer in Brooklyn, NY

Is it possible to get an 800k mortgage with very good credit and descent yearly income of 80k?

Asked by Mike, Brooklyn, NY Wed Jul 15, 2009

I'm looking to invest in a multi-family/purpose property, not limited but merely, in BedStuy/Parkslope neighborhoods in Brooklyn, NY.
As a result of the sky high price tags and market trends in this areas, I was wondering if is common for individuals with no major expenses and similar credentials as mine to get approved for loans up to 800k or above? And if so what is the best way to go about it?

Help the community by answering this question:


I don't think that $80,000 will support $800,000 lon amount.
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Good Luck.
0 votes Thank Flag Link Tue Jul 21, 2009

Considering this is an investment property the traditional qualifying standards do not apply. Michael is looking at this loan as if it is your income that qualifies you for the loan, this is not how it works. This loan is a commercial loan and the income from the property (not the borrower) will determine its eligibilty. Commercial lenders are typically looking for a LTV of under 80% and the property should debt service around 1.25%.
On Trulia you will find an abundance of residential mortgage advise but when it comes to commercial you may want to look elsewhere. I handle alot of small commercial loans and I would be more than happy to look at this for you.
Ryan Brandenburger
0 votes Thank Flag Link Wed Jul 15, 2009
Dear Mike:

It all depends on how much of a down payment you will be using. If you are buying a property for $5,000,000 and only seeking to obtain a mortgage for $800,000.00 you will not have a problem. If the house you are buying is for $801,000.00 forget it.

Do yourself a favor and speak to a mortgage banker, have them look at your credit report, last two years tax returns and last three months bank statements. Then ask them how much you can borrow. This is the only true way to get an accurate answer to your question.

If I can be of further assistance, please let me know. Good luck!

Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, inc.
Office: (718) 645-1665
0 votes Thank Flag Link Wed Jul 15, 2009
Loans like this are the main reason we are in the mess we are in right now.

Let's see: 80k/12= 6666.7 gross monthly income before taxes.
800k Loan at say 6%= $4800 principal and Interest, plus ~ $450 tax/ins= $5250

Add in 75% of rents for a vacancy factor. Doesn't look too good. You need to be under a 45% debt ratio.

How much are you going to put down? How much do you have in reserves after the down payment?
0 votes Thank Flag Link Wed Jul 15, 2009
All depends on qualifying ratios. The front end qualifying ratio is calculated by dividing the monthly payment, including principal, interest, taxes and insurance(PITI), by gross monthly income. The back end qualifying ratio is calculating PITI plus all the other monthly indebtebness divided by gross monthly income.
0 votes Thank Flag Link Wed Jul 15, 2009
Sure, if you can find a property with owner financing.

However, if you're expecting to go to a bank and get a loan, it'd be highly unusual.
0 votes Thank Flag Link Wed Jul 15, 2009
Don Tepper, Real Estate Pro in Burke, VA
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