In all probability you will need to save more. Most banks require you to put down 20% on a purchase today, and they will also want you to have 6 - 12 months of mortgage and maintenance payments left in the bank after closing. Some co-ops have even stricter requirements (I know of several in Brooklyn Heights that require a minimum down payment of 25%).
So even if the co-op you were buying cost $100K, you would need a minimum of $20K for the downpayment, as well as several thousand more for closing costs (attorney's fee, bank fees, etc.), plus the required amount left over.
One way to avoid this high down payment requirement is a loan through the FHA, which requires only 3.5% down. However, the FHA does not finance co-op purchases, only condominiums (and only certain ones) and houses.
in that price range for your consideration. Good luck in your search and happy savings.
I suggest you meet with a Loan Officer and allow him/her to review your credit, income & asset documents, to determine what you're qualified for. This is the only way you can really determine how much you'll need for down payment and closing costs.
If you need a Loan Officer, I'm available to meet in our Brooklyn offices. Good luck!
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Senior Loan Officer
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
Many co-ops have a minimum down payment requirement of 20%. Hence, you will most likely have to find a co-op without such a requirement, and that can be like finding a needle in a haystack. Aside from that, you need to get your self pre-qualified by a mortgage banker to find out exactly how much you can borrow and what you "closing costs" will be.
For most real estate deals carrying a mortgage, the purchaser's closing costs will be about 5-6% of the mortgage amount so be prepared for that. Once you find out how much you can borrow and how much you can spend, you have to figure out the percentage you will be putting down and then make sure the co-op you are looking to purchase in will be willing to allow you to purchase with that type of down payment. Again, if you are putting down 20% or more, you do not have to worry about that so much.
If you are putting less than 20% down, here is a hint.... you will need to find a co-op that is being sold by the "sponsor" or that has "no board approval." 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