There are three things that will determine how much of a down payment you will have to come in with...
1) The amount of money you yourself have to invest.
2) The amount of money that your mortgage banker requires you to put down in order to qualify for the loan. This will vary depending on many different factors such as your income and credit history, etc, etc. If you are a veteran of the US military, you can even go with no money down.
3) The co-op policy regarding minimum down payment standards. This will vary from co-op to co-op, each makes it's own individual policy concerning minimum down payment. It is true that the vast majority of co-ops in Brooklyn do require 20% down payments, there are some that require more and others that require less. Then there are some that will allow you to use whatever down payment your mortgage banker deems appropriate for you to qualify for the mortgage, although those are rare.
The long and short of it is that you have to make sure you can qualify for a mortgage first. Once you know you can get the mortgage, and know how much you have to put down, you should look at every unit in your price range and see if any of them fit the bill so to speak.
HELPFUL HINT... Often times a co-op building may have some units that were never sold and are actually still owned by the co-op as an entity. These co-ops are usually rented out to a tenant by the co-op itself. These types of co-op apartments are referred to as "sponsor owned units". Usually when a sponsor owned unit is sold, they waive all down payment requirements. Hence these units can be purchased by whatever down payment your mortgage banker qualifies you for.
Mitchell S. Feldman
Associate Broker/ Director of Sales/ e-Pro Realtor
Fillmore Real Estate
Office: (718) 252-2000/ Cell: (917) 805-0783
advertising them as 10% down. most are 20 to 25% down. Have you been approved for 325K , is this your max. why not try another area, or possibly a condo - but then you will be going FHA and
the project has to be approved. if you have any other questions feel free to contact me.
We can definitely take a look at some properties if you have some time. I was just looking with a client today and a few places (Co-ops) required 40% (yikes!). To answer your question, I would say it would be hard but not impossible. I think you would have better luck looking at a condo as they are a little more lenient with the financing.
Michael S. Dacko
Ideal Properties Group, LLC
232 Court Street, Brooklyn NY 11201