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.
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!
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker â€“ NYS Dept. of Financial Services
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!
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Feel Free to Call me; 718-858-7600 or e-mail: klilly@Realtyonthegreene.ecom
Realty on the Greene. LLC