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%.
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!
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
J Buzz Real Estate LLC
"Where Real Estate Meets Technology"
855-528-9973 x4 Office (toll-free)
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!
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
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.
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.
Halstead Property, LLC
http://jenetlevy.halstead.com for all NYC listings