Hi Daniel, The coop/condo may have minimum requirements, like a bank. Your deposit with the Bank can be greater than the minimum requested by the building. The purpose for the minimum requirements by the building is to obtain a financially qualifyed person as a coop/condo neighbor.

Hi Daniel, I am an attorney who specializes in coops and condos. The minimum down payment that is required by either the coop or condo board is not in addition to the down payment required by the lender. If you have any further questions concerning a purchase, feel free to call me at 212-949-5586 or visit my website at http://www.lieberlegal.com for commonly asked questions and answers. If you would like a referral for a mortgage broker who would be able to provide you with the estimated closing costs you could expect, along with the estimated monthly mortgage payment, please also feel free to call. I am also personally selling my 1 corner bedroom coop in Great Neck with a maintenance of $383 plus parking , located at 221 Middle Neck Road, Great Neck. If you have any questions concerning that, please feel free to call. I just reduced that from $199,999 to $179,999. Best regards, Barbie Lieber, Esq.

Hello, I am selling a 1 Bedroom Co op in Kensington Brooklyn.I am asking $190,000 Neg with a minimum of 20% down.Email me if interested jwonder@gmail.com

Your downpayment is just that, so if your total downpayment is 25% that means the rest is a mortgage--did you visit a qualified loan offer yet to see what your budget can handle--if not now is the time.

Anna

Hello, I am a co-op specialist (read my blog and see my sales on my site) and I get this question quite often. Short and simple, the down payment the co-op requires which is the 25% is the minimum you need to have as your down payment. This amount is usually given to your attorney when you go in to sign your contract and the payment is sent out to the seller's attorney where the money will be held safely in an escrow account until you close.

Now, there is a possibility of needing more money for a down payment. If the bank feels that you are a risk due to your credit report then they can have as part of your loan conditions to deny you PMI and want you to put down additional funds.

Assuming that you are pre-approved already, this most likely will not happen to you because you have such a large down payment already.

I hope this answer has helped you. I have many co-ops and I can definitely find you a condo as well. Visit my website for properties at http://www.KandHhomes.com

Hi Daniel, The down payment requirement is the only down payment you will need. Customarily at signing of contract 10% down payment, is held in escrow with the sellers attorney. The balance of your down payment you bring a check to the closing and the bank brings the check for your mortgage to give to the sellers attorney and title is transfered. The mortgage gets recorded against the property you just purchased-in a Coop it is a UCC1... Terry K 718-614-3167 cell

Dear Daniel:

When a co-op specifies a minimum down payment they are talking about the down payment that you give to the seller and that's it. In otherwords, the co-op simply does not want your loan amount on your purchase to be more than 80% of the value or price.

The reason why most co-ops insist on this is because they tend to be paranoid. Their concern is that if you do not pay your mortgage and the bank has to foreclose on you, they do not want it to take a long time for the bank to then re-sell the co-op. The assumption is that since the debt owed to the bank is only 80% of the co-ops value and the bank just wants to break even, they will be able to sell it at an attractive price hence effecting a quick sale. The co-op does not want an empty forclosed co-op sitting there unsold for a year which they would consider an eyesore to say the least.

There are some co-ops out there that will allow down payment lower than 20%, it is a case by case thing. I would say 85% of them want 20% down as a minimum. So in answer to your question, all you need is the 20% down which ultimately is given to the seller. The co-op does not get anything other than the typical application fee and credit reporting fee which usually is about $200.00 to $300.00. I will point out that many co-ops have a flip tax which is paid by the SELLER when they sell. This flip tax can be anywhere from $0.00 to 20% of the sales price. You want to know what the co-ops policy is regarding the flip tax because even though you do not pay it, when the time comes for you to sell the co-op, you will have to pay said flip tax when you sell. Co-ops with high flip taxes may be a little harder to sell for obvious reasons, if you plan on staying there for a long time it may not really matter.

If you have any further questions or if I can be of further assistance to you please contact me. By the way, I also have several co-ops I am marketing for sale in Brooklyn if you would be interested.

Sincerely,
Mitchell S. Feldman
Associate Broker/Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665
Email: MitchellSFeldman@aol.com

Daniel,

Nope.

If the seller wants a minimum of 25% down and you want to 50% that's OK. You have met or exceeded the minimum. The Escrow Company or real estate attorney holds your $80,000 in escrow to give to the seller and you take out a loan for the balance, in this case only $110,000 plus some closing costs and fees.

Your down payment is not in addition to the 25%; the 25% is included in your 50%.

Best of luck

R. Todd Scott
Senior VA FHA Loan Specialist
iFreedom Direct
CA & TX Loans
800 891-5785 X4625

25% is the minimum down payment you must make to buy the apartment. Both your down payment money and the money from your mortgage are given to the purchaser of the apartment, not the bank. When you sign a contract to buy a condo, co-op, or house, you generally put down 10% at that time and it is held in escrow by the attorney until closing, when you pay the remainder of your down payment. Co-ops generally require a higher down payment amount than condos (although there are some co-ops that will accept only 10% down); however, in the current climate it is difficult to obtain mortgage financing for anything less than a 15% - 20% downpayment regardless of co-op or condo.