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
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:
PROPERTY TYPE FHA JUMBO LOAN LIMIT APPROX SALES PRICE
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.
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