Home Buying in Brooklyn>Question Details

Peter, Home Buyer in Brooklyn, NY

Minimum down payment for a 2-family duplex in Brooklyn?

Asked by Peter, Brooklyn, NY Mon Nov 26, 2012

Hi! I intend to buy a 2-family duplex in Brooklyn, NY with a 20% down payment, which I've always thought was the minimum amount to avoid mortgage insurance. The house will be my primary residence. I applied for a pre-approval at Chase and they told me that 20% was the minimum for a 1-family house, while 25% was the minimum for a 2-family one. I did some googling and found the 25% figure only when a 2-family house is bought as an investment, not a primary residence. I went back to Chase and asked them, they told me that it was 25% regardless. So, it is just a Chase policy or that's what I should expect elsewhere as well?
Thank you

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5
Hi Peter
send me your direct email and i will give you a phone number to try at continental bank.
madelinepadovano@fillmore.com
0 votes Thank Flag Link Wed Nov 28, 2012
Good morning Peter,

If you are a Veteran of the Armed Forces and you qualify for VA Guaranteed mortgage financing, then eligible Veterans are permitted to financing up to 100% of the purchase price of the home. That means no down payment.
http://www.trulia.com/blog/tcurranmortgage/2011/10/va_mortga…

For other HomeBuyers, Non-Veterans, the program in the New York area for qualified Homebuyers with the lowest down payment requirement currently is the FHA or Federal Housing Administration. The FHA Insures mortgages made by banks and Mortgage Bankers and allows for a down payment of only 3.5%. http://portal.hud.gov/hudportal/HUD?src=/topics/buying_a_home

After FHA, Conventional financing through either FannieMae or FreddieMac allows for a minimum down payment of 20% for a 2 Family in Brooklyn. Some Lenders might offer a loan with a lower down payment and PMI. The Lender will need to obtain approval from a Private Mortgage Insurance company (PMI) to complete the loan approval.

The best way to have your questions about down payment and mortgage qualifications answered is to locate a local Mortgage Banker with at least 15 years experience. Mortgage professionals like myself who work for local Mortgage Bankers are Licensed as opposed to the registered status of sales people at regular banks. Thus you will receive a higher level of service which is just what a First Time HomeBuyer needs.

I hope that helps!

Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services
NMLS#3528
0 votes Thank Flag Link Tue Nov 27, 2012
Dear Peter:

If you are going to use the house as your primary residence you can go 20% down and not pay the PMI. For an investment it is 25%. I do not know what your mortgage person at Chase is talking about, unless... a) Chase has their own internal policy requiring the 25% down (as you stated) or b) you already own another property thus making it questionable if the second will truly be your primary residence (in that case most banks will assume investment property regardless to protect themselves and make sure you get the loan).

If I can be of further assistance, please let me know. Good luck!

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes Thank Flag Link Tue Nov 27, 2012
Shop around, each lender is different....
0 votes Thank Flag Link Tue Nov 27, 2012
There are many banks that do offer 20% no PMI requirement mortgages for a two family, this is were a good buyers agent can help you to guide you through the vaying options out there, not only in finding a house, but the best mortgage broker/banker/bank direct option for the house that you choose. Bare in mind it is not only people that need to qualifie for a mortgage but buildings that need to be matched with the right bank. Different Banks have different requirements not only for buyers, but what they will mortgage.
Feel Free to Call me; 718-858-7600 or e-mail: klilly@Realtyonthegreene.ecom
Realty on the Greene. LLC
Brooklyn, NY
0 votes Thank Flag Link Tue Nov 27, 2012
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