Home Buying in New York>Question Details

Amanda, Home Buyer in Cherrytown, NY

Are there any condos in nyc or brooklyn that allow 5% or 10% down?

Asked by Amanda, Cherrytown, NY Thu Jan 10, 2013

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Joana Filgueiras, PA’s answer
For condos you usually need 10% or more down, it depends on the financials and occupancy of the buildings, and also, on your credit and pre-qualification. 5% nowadays is only for FHA (which is actually 3.5% down) but many condos are not approved for FHA. New York does have some that seem to be FHA approved.
0 votes Thank Flag Link Fri Jan 11, 2013
Amanda,
Condos in general only require 10% down. However, most lenders will not lend more than 80%. As far as 5% down, a condo that is on the FHA-approved list would fit that bill. Those would be in rather new developments, as it is only on newer ones that had a back-up of inventory during the downtown where the sponsor would have gone through the time and expense of getting approval for FHA financing by buyers.

Best,
Jenet Levy
Halstead Property, LLC
jlevy@halstead.com
212 381-4268
http://jenetlevy.halstead.com
1 vote Thank Flag Link Thu Jan 10, 2013
Hi Amanda. Here's my read on your question. First, check Ms. Brocco's link below for FHA approved Condo buildings. That will give you proper info as to who would allow a 5% or lower deposit. Second, go to a Mortgage professional and get yourself pre-qualified for a loan and ask them about first time buyer programs and FHA approved buildings and financing. Third, get yourself a Broker to help you navigate the purchase process, you'll need one. Now, you can also go with option three first. The broker will arrange for you to get pre-q'd, they'll also check into the buildings and what may be available. They'll also set up all appointments.

The reaility is this, obviously you are trying to do this on a shoestring. I don't know what your work or credit history is. I don't know what type of assets you have or your income or if you're getting a cash gift from someone for your downpayment. You wll need to consider closing costs and some amount of post closing liquidity. I strongly advise you work with an experienced real estate professional. Good luck.
0 votes Thank Flag Link Thu Jan 10, 2013
Providing the condo FHA approved, and there isn't that many, you can put down as little as 3.5%, and of course you would also have to be mortgage eligible.
0 votes Thank Flag Link Thu Jan 10, 2013
Amanda,

Condos may allow 10% down but will the banks LEND you 90%? This is very important to find out before you begin your search. If you're looking for a building that will take 5% or less, you need to search out that allow FHA loans.

Best,

Nick Rafello, SVP
Associate Broker
The Cororan Group
0 votes Thank Flag Link Thu Jan 10, 2013
For FHA approved condos see link https://entp.hud.gov/idapp/html/condlook.cfm
0 votes Thank Flag Link Thu Jan 10, 2013
It is not so much as whether the condo association allows 5 - 10% down but rather if you can find a lender that will write a loan with 5 to 10% down.

Check with your lender about a FHA home loan. These allow first time home buyers buy a home with less than 3.5% down (and most of your closing costs and fees can be included in the loan).

Simon Campbell - http://www.bankforeclosuressale.com
0 votes Thank Flag Link Thu Jan 10, 2013
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