Christopher,
Somehow I just came across your question, so you may in fact have found a condo and moved -- but, for what it's worth you certainly can use FHA financing for Brooklyn condos with as little as 3.5% down, even in many cases for condos not on the FHA list. In a soft market, a condo seller will often take a bid with less than 10 percent down. (Co-ops are a different story)
Very often on Trulia real estate agents and people not even in the business answer questions about mortgages and give conflicting and inaccurate information. (like the answer about income caps on FHA - totally untrue)
My approach is let the realtors answer the real estate questions and the mortgage professionals answer the mortgage questions, and less confused you will be. !!
Ruth Bonapace
Bank of America Home Loans
ruthbonapace@gmail.com

from one first time buyer to another ( NOT professional advise )
eligibility for FHA loans is determined by whether or not your income is BELOW a certain amount - I don't know what the cutoff is, but I didn't qualify with an income of 75k. So, its possible that if your income is low enough to qualify for FHA, the asking price for the a condo in that area would be too high for you to make the payments.
Another thing to consider, most banks won't give a loan for a condo until the building is at least 50% sold, so the developer has to get that first half sold to people who can either pay cash, or somehow pull off financing - this is really stalling brooklyn condo sales.
New construction also has another problem for the buyer, which is much higher closing costs - there is an extra tax you have to pay with new construction called transfer tax and it is significant. On a 300,000 condo, closing costs can top 20,000. You will payer lower closing costs on a Resale condo or coop.
This may be a blessing in disguise though....the more you put down, the less you pay for the place overall, so it does make sound financial sense to save until you have at least 10% to put down. I lived in a cheap rental and saved faithfully for three years until I had 10% to put down, and it was worth it.
I also suggest only asking for/ listening to advise from people familiar with the local market - New York is not really a normal place and somebody in Florida isn't going to understand new york states idiosyncratic laws and RE climate.
Good Luck !

Why would you not be able to use FHA in Brooklyn? There are 8 FHA approved condo projects in Brooklyn. Here is a link:

https://entp.hud.gov/idapp/html/condo1.cfm

I am a mortgage broker. If I can be of service, please let me know!

Martin Smith

Precision Funding
877-238-6324 Ext 704
513-536-7184
877-238-6324 FAX
MSmith@PrecisionFundingUSA.com
http://www.PrecisionFundingUSA.com

Most condos require 10% down. That is the standard rule of thumb. Even if you have a lender that will do more, the condo will most likely not accept that. Your 10% is due at contract signing. If you would like help with Williamsburg, feel free to contact me. I live in Park Slope and know Williamsburg very well.

I have not heard that FHA loans are not an option for condos in Brooklyn or anywhere else? Could you provide me with the individual/company that has told you that or tell me if they told you why? As far as I know, FHA is still giving out loans for more than 100% of the sales price (as long as the unit appraises) and I'm sure there are lenders giving out loans with less than 10% down. Credit is obviously tighter but I'm sure you could get approved according to your income/debt ratio and your credit score. With respect to the builder's willingness to accept less than 10%, that would be on an individual, case by case basis. If you need further assistance, please contact me.

Ralph Windschuh
Century 21 Princeton Properties
631-467-0009
rwindschuh@c21princetonproperties.com

Yes. FHA 3% down minimum is fine. You can put down more if you lik.