Home Buying in Brooklyn>Question Details

Steven, Home Buyer in Brooklyn, NY

Is it possible to get more than 80% jumbo financing on a single or multi-family townhouse in Brooklyn?

Asked by Steven, Brooklyn, NY Thu Feb 27, 2014

My wife and I already have financing for $1 milllion for a condo/coop at 20% down, but now also want to consider whether buying an entire building may be possible. Specifically, whether it would be possible to get a jumbo loan with 85-90% financing for a purchase price of $1.3-1.5m on a single family home or $1.5-2.0m on a 2-3 unit multifamily home (owner-occupied, remaining unites with existing leases in place).

Our current lender can do 20% on a 1-2 family home up to $2m (they don't lend at all on 3 family), but we'd want a lower down payment if we go above $1m. We're open to an 80/10/10 deal, or something similar, but haven't been able to get much info on whether this sort of financing is currently out there. We're looking in the Park Slope, Brooklyn Heights, Cobble Hill, Boerum Hill, Carroll Gardens and Ft. Greene neighborhoods. Thanks in advance for any info!


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Sorry to say this; but you will not find a mortgagable house in Park Slope, Brooklyn Heights, Cobble Hill, Boerum Hill, Carroll Gardens or Fort Greene in the price ranges you are suggesting for a one or 2-3 family house.
There are bidding wars going on for even uninhabitable buildings that need major work and hence not conventionally mortgagable even with 20-30% down in the neighborhoods you have mentioned.
Houses have to qualify for mortgages as well as buyers and the price point that you are suggesting are all cash buyers/developers/renovators buying.
But even if you move ahead of the market to the "next neighborhoods" Lefferts Gardens, Prospect Park South, Greenwood Heights etc. with a 10% down offer, beware that you will probably be out bid by buyers looking for less financing. The bigger contingencies you are asking the seller for the less likely your offer will be accepted.
With 90% financing the property has to be in very good condition and the appraisals are difficult with the market appreciating so fast. There is not enough wriggle room for the underwriters at the Banks to write 90% loans.
If you have a private Banking relationship with your Bank, maybe you can consider waiving a mortgage contingency.
Also look to how you can get a bigger down payment: Retirement funds can be tapped with no penalty for the purchase of a primary residence for example.
Kathryn Lilly, Broker
Realty on the Greene, LLC
2 votes Thank Flag Link Thu Feb 27, 2014
You might have a couple options. The best way to go about it is that you meet or speak with a Loan Officer and allow them to review all the necessary documentation and see what options you have then. I have branch offices in Brooklyn we can use to meet face-to-face. Email or call me anytime and we can talk and see where we can go from there. Good luck! IF MY RESPONSE WAS HELPFUL, CONSIDER CLICKING BEST ANSWER! • Javier Meneses Senior • Loan Officer • NMLS #23130 • STERLING NATIONAL BANK • 310 Crossways Park Drive • Woodbury, NY 11797 • jmeneses@snb.com • (516) 606-9648 Cell • (516) 740-4478 Office • (516) 918-5383 Fax
1 vote Thank Flag Link Thu Feb 27, 2014
This is really advise you need to get form a mortgage broker and not an agent as we we are not qualified to give mortgage advise. Best to be pre qualified before going out and looking so you know what you can afford comfortably so you are not disappointed by surprises afterwards... Ive had clients not get firm info on qualifying and they are let down hard once they get all the facts... even thought they thought they had them. Its a sad hard process to see them go through. Also check with several places to have back up info and may get better rates & points.

Good luck!
1 vote Thank Flag Link Thu Feb 27, 2014

Unfortunately on a transaction with that purchase amount, you will not find financing with a lower down payment than what your lender has already quoted to you. Private money sources will also cap you at 70% loan to value on residential transactions. Not to mention, in the current lending environment the CLTV (complete loan to value) usually mirrors the loan to value. The 80/10/10 financing that may have been available prior to the market correction just doesn't exist anymore.

HOWEVER, financing through the FHA program may be able to get you in the jumbo marketplace but not quite at the values you have listed above. Here is what you would be looking at by property type if you wanted to put 10% down:

2 Family $800,775 $900,000
3 Family $967,950 $1,100,000
4 Family $1,202,925 $1,336,000

If you'd like to know more about your options or just get some friendly advice, I'm always willing to help. I hope you found this helpful and I look forward to possibly working with you on your purchase.

“New York City’s Mortgage Banker”

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1 vote Thank Flag Link Thu Feb 27, 2014
You should really contact a mortgage professional as they will be able to give you the best advise.
0 votes Thank Flag Link Sun Mar 16, 2014
We offer private money in addition to FHA, conventional and JUMBO loans. Our private money option requires a 20% down payment up to 3 Million, but the rates will be higher than an FHA JUMBO or a JUMBO loan..FHA and JUMBO options would require less down, but the loan amount will not go as high.

Let's discuss your loan scenario in more detail. Contact me at 800 315 8803. My name is Bart and I have been in the mortgage business since 1987. I am happy to answer your mortgage questions, 7 days a week and review your loan scenario. Until then, I look forward to hearing from you.

Bart Gabe - Lending Nationwide Since 1987



800 315 8803

NMLS 20743
0 votes Thank Flag Link Thu Feb 27, 2014
If you were to do an FHA loan, for a 3 fam owner occupied if in Bronx,Duchess,Kings,New York,Orange,Putham,Queens,+ Rockland, counties the base loan amount for a 3 Fam can be $967,950.At an 80% LTV that would make a PP of $1,209,937 PP We still do 2-3 unit 203B loans and 203K Rehab Loans in New York.Mike.Palmieri@nxtloan.com.617-202-0632 Direct..
0 votes Thank Flag Link Thu Feb 27, 2014
All things are possible. Look for a Private Money Lender rather than a bank or mtg broker.
0 votes Thank Flag Link Thu Feb 27, 2014
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