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ELants, Home Buyer in Brooklyn, NY

A local realtor from Brooklyn, NY has mentioned to me that many homes now are eligible for a 3.5% down payment ? Can you guys confirm this is true ?

Asked by ELants, Brooklyn, NY Mon Mar 26, 2012

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9
Absolutely! Do you need a lender?
1 vote Thank Flag Link Mon Mar 26, 2012
Dear Euro,

For most qualified HomeBuyers, (Non-Veterans,) the program with the lowest down payment requirement currently is the FHA or Federal Housing Administration. The FHA Insures mortgages made by banks and Mortgage Bankers and allows for a down payment of only 3.5%.
http://portal.hud.gov/hudportal/HUD?src=/topics/buying_a_home

After FHA, Conventional financing through either FannieMae or FreddieMac allows for a minimum down payment of 5%. The Lender will need to obtain approval from a Private Mortgage Insurance company (PMI) to complete the loan approval.

The best way to have your questions about down payment and mortgage qualifications answered is to locate a local Mortgage Banker with at least 15 years experience. Mortgage professionals like myself who work for local Mortgage Bankers are Licensed as opposed to the registered status of sales people at regular banks. Thus you will receive a higher level of service which is just what a First Time HomeBuyer needs in the Bronx.

You can verify the License of any Licensed Mortgage Loan Originator at nmls.consumeraccess.org

Hope this helps!

Trevor Curran
NMLS #40140
0 votes Thank Flag Link Fri Jul 20, 2012
Hi Euro,

An FHA insured loan is a Federal Housing Administration mortgage insurance backed mortgage loan which is provided by a FHA-approved lender. FHA insured loans are a type of federal assistance and have historically allowed lower income Americans to borrow money for the purchase of a home that they would not otherwise be able to afford...with as little as 3.5% down.

For more information: visit: http://www.hud.gov/buying/loans.cfm

Have additional questions, contact me at:

Lisa L. James
Licensed Real Estate Salesperson
Lisa@JBuzzRE.com
J Buzz Real Estate LLC
"Where Real Estate Meets Technology"

855-528-9973 x4 Office (toll-free)
800-922-0571 Fax

Stay Connected:
FACEBOOK: http://www.facebook.com/MyBestBrooklynRealtor
TWITTER: http://www.twitter.com/mybestbkrealtor
LINKEDIN: http://www.linkedin.com/in/lisaljames
INSTAGRAM: mybestbkrealtor
0 votes Thank Flag Link Mon Mar 26, 2012
Dear Euro:

FHA mortgages allow for a minimum down payment of 3.5%. Most homes will qualify for an FHA loan but the property has to be in "decent" condition. With a conventional mortgage condition is not a problem, but FHA knit-picks. As an example, if they see paint chipping anywhere, they will want it removed and repainted. That is a minor issue, but if there is a major issue that the seller is not willing to fix, you will not be able to get an FHA mortgage on that particular property. If the house needs a lot of work it will probably have trouble being approved for an FHA loan.

In addition to that, you have to qualify for the loan as a buyer yourself. The bank will have to review your income, assets and credit report to determine if you can borrow and how much. If you have not already been pre-qualified by a bank, you should do so before you start looking for houses.

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

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes Thank Flag Link Mon Mar 26, 2012
Euro,

If you are purchasing a house, that will be owner occupied that is correct. Please check with a mortgage professional before you begin your search to verify this based on your specific situation. FHA does have a minimum credit score requirement. There are some Condos also that are FHA approved for the 3.5% downpayment. It is not only in Brooklyn but also all of the other boros.
0 votes Thank Flag Link Mon Mar 26, 2012
I believe you need a 620 score or higher, but yes and FHA loan is a great option. You will have a much lower down payment and likely a lower interest rate. The FHA secured loan is for everyone and you don't need to be low income. We see many luxury homes being bought here using the FHA loan. Contact a good lender.
0 votes Thank Flag Link Mon Mar 26, 2012
Hi, Euro,
That would be an FHA loan. I would suggest you speak with your lender regarding whether you qualify for an FHA loan for a single family house. FHA would never apply to co-ops, and it would apply to select condo buildings where the building has sought and received FHA designation.

Jenet Levy
Halstead Property, LLC
jlevy@halstead.com
212 381-4268
http://jenetlevy.halstead.com for all NYC listings
0 votes Thank Flag Link Mon Mar 26, 2012
FHA loans do require 3.5% down; therefore do visit with any licensed loan officer for qualification; be aware that a mortgage pre-approval letter is required in order to determine your price range and for any offers to be taken seriously.
0 votes Thank Flag Link Mon Mar 26, 2012
A regular FHA loan is a 3.5% down payment. I would contact a local lender and chat with them about the different types of loans out there.
0 votes Thank Flag Link Mon Mar 26, 2012
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