Home Buying in 10708>Question Details

Downpayment, Both Buyer and Seller in 10708

I'm looking into buying a condo or townhouse with 3br/2bath. I am looking for something in the $400,000 range. What percentage of a down?

Asked by Downpayment, 10708 Sun Jan 10, 2010

payment...? I am hearing rumors that they would want the full 20% but I don't think I can afford that down payment. I would definitely be able to do 5-7% and would probably be able to scrape together 10% if I needed to, but I definitely don't think I would be able to get 20% together. Would this be at all possible? I know that even if i put the 10% down, I would definitely be able to make the monthly payments.

Help the community by answering this question:


The condo should be FHA approved, but I recently helped a buyer where the condo wasn't on the FHA list. What made the difference was the lender, who was familiar with the building, because they had just helped another buyer at the same building. If you are interested, please email me or give me a call.
0 votes Thank Flag Link Wed Jul 14, 2010
It really depends on the condo itself. Most condos are not FHa approved because they have first right of refussal. Some banks are taking exceptions on those condo buildings, but it is a case by case basis. The exception was extended to Jan 31st, 2010. We are not sure if they will be extended again.
0 votes Thank Flag Link Fri Jan 15, 2010
I 've got some very important news for you.

FHA does offer 3.5% down payment, however the condo project needs to be FHA approved.

Pull up this website, https://entp.hud.gov/idapp/html/condo1.cfm

Switch approval method to Pre HRAP/DELRAP.

Put the housing tract number in as the condo ID and search. If the condo project pops up, it is approved.

If it is, then FHA is okay. If not, the FHA does have a "spot approval" process, meaning if the project is not approved, you could have just this one unit approved....IF the HOA meets FHA guidelines, but this expires on Jan 31st, after which time ONLY project approvals will be made.

Also, Treasury Dept. Stimulus funds being used to by Mortgage Backed Securities (MBS) will be exhausted in March, most lenders anticipate a big jump in interest rates, as much as a full point.
0 votes Thank Flag Link Sun Jan 10, 2010
Keith Sorem, Real Estate Pro in Glendale, CA
There are condos on Texas Ave annd Georgia Ave that are under $400,000 currently for sale. The other agents are correct with repect to FHA and the like. You may alos require a selles concession to allow you to roll your closing costs into the loan. The sller would have to agree to this as it may affect the appraisal of the property. If you would like me to send you these 3br/2bath condos...AskRey.

Rey Hollingsworth Falu
Licensed Associate Real Estate Broker
Houlihan Lawrence - Bronxville

Direct 917-855-0277
Web Reference: http://AskRey.net
0 votes Thank Flag Link Sun Jan 10, 2010
Where are you hearing these rumors from? Although it is common for co-ops to have a minimum down payment required, condos generally don't, but there could be something in the bylaws of a particular condo that would require 20% down. In order for you to use an FHA loan to purchase a condo, the development would have to have FHA approval. When looking, you may want to work with an agent who is familiar enough with the various complexes to know that. As others have mentioned, with the 10% down, you would have other costs involved. In addition, the rate would most likely be higher than what you are using to calculate on a conventional loan because of the adjustment for a condo over 75LTV. Not knowing your credit scores, it is also difficult to determing whether you would qualify for PMI. You would have an easier time qualifying for an FHA loan because the credit score requirements would not be as high.
0 votes Thank Flag Link Sun Jan 10, 2010
You can possibly get an FHA with as little as 3.5%. You need to take into consideration that without a 20% downpayment, you will have to pay PMI (mortgage insurance) which most likely will be rolled into your monthly mortgage payment along with taxes. HOA or Maintenance charges are separate. PMI can raise your mortgage payment substantially. Depending on where you want to live, your taxes can vary greatly as well. I suggest you contact a mortgage mortgager or bank to see exactly how much condo you can afford and how much the downpayment will affect what you have pay on a monthly basis.

If you would like to start looking at condos, please give me a call and I can help you get started.

Barbara O'Connell
Licensed Real Estate Salesperson
Margot Bennett, Inc.
0 votes Thank Flag Link Sun Jan 10, 2010
You can put as low as 3.5% as a down payment when purchasing a home. Keep in mind your monthly payments include your taxes, home owners association fees, PMI, and other fees as well. You may also qualify for tor the $8,000 tax credit.
Please call me at your earliest convenience so I can discuss your concerns with you.
917 597 5690
0 votes Thank Flag Link Sun Jan 10, 2010
3.5 percent with FHA and 10 percent with a conventional loan. With a downpayment of less than 20 percent, however, you will be subject to mortgage insurance with a conventional loan and other fees with FHA.
Your ability to qualify will take into account not only the ratio represented by principle,interest,taxes, insurance and HOA but also those costs plus the monthly servicing of existing debt,of which the total may not exceed 45 percent.
In addition the condo itself is subject to approval for both types of loans. Contact me and I will walk you through the process
0 votes Thank Flag Link Sun Jan 10, 2010
With an FHA loan you can put as little as 3.5% down, depending on various factors. If you need a lender to talk to about it, let me know. I have worked with several who are very good.
0 votes Thank Flag Link Sun Jan 10, 2010
FHA loans typically require 10% down and conventional loans require 20% down.
0 votes Thank Flag Link Sun Jan 10, 2010
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