Home Buying in New York>Question Details

Manfred Ma, Home Buyer in New York, NY

What is the minimum down payment required when purchasing a property in New York?

Asked by Manfred Ma, New York, NY Thu Dec 19, 2013

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Downpayment starts from 10% for a condo building and 20% for a coop (some coops require a higher % down). However, when you speak to a mortgage bank, usually they can offer better mortgage terms when the down payment is 20% or higher on a condo. Banks also take into account your financials, credit score and many other factors to tell you how much they can finance and on what terms. You should also keep in mind that coops have post-closing liquidity requirements, which means that after closing a buyer would have to have about 2 years of mortgage plus maintenance in liquid assets (not 401K). I have a template that I'd be glad to share, which shows the entire financial picture for a condo or a coop, where you can change the price, maintenance and mortgage %, etc. Also, not every building is eligible for financing - when you find something that you like, you have to check with your bank and may be with couple others, if that particular building on their approved list for mortgages.
1 vote Thank Flag Link Fri Dec 20, 2013
Depends on the type of property of interest and the type of loan one is eligible for; therefore for a personalized answer visit with any licensed loan officer; he/she can only make a downpayment determination after your overall financials have been reviewed, all else would be pure speculation. Be aware that a mortgage pre-approval letter is required in order to determine your price range and for any offers to be taken seriously.
1 vote Thank Flag Link Fri Dec 20, 2013
If you are looking to buy investment property 1- 4 family you should plan on having 25% down payment even though you may get financing with 15% down payment the rates are not very attractive, in addition to this you will need approximately 5% in closing costs and may need to have reserves for 6 months of mortgage payments. Gift funds are not allowed when buying investment property. Some lenders may even ask for you to have investment property management experience of at least 2 years. If you need to speak with me to get financing with the least hassle pertaining to your own situation, my contact information is given below.

Sanjeev Ahuja, NMLS #148731
Mortgage Broker
Home Funding LLC
110 Jericho Turnpike Ste 214
Floral Park, NY 11001
Direct Phone 917-517-2552
NYS Registered Mortgage Broker, Dept of Financial Services, Loans arranged through third parties (NMLS # 885573)
1 vote Thank Flag Link Fri Dec 20, 2013
It depends on the type of property and loan product you choose. Coops have a set minimum downpayment by the board. Condos and single family homes qualify for SONYMA loans which allow for a minimum of 3% down (this loan is for first time buyers only). Then there is the FHA which allows for a minimum down payment of 3.5%), VA allows for 100% financing with strict guidelines. If you want a multi family home the down payments can vary. Otherwise you can do regular conventional financing. Speak directly with a loan offier to see what your options are.

Christopher Pagli
Accredited Buyer Representative
Real Estate Associate Broker
William Ravesi Legend RealtyGroup
914 406 9023
1 vote Thank Flag Link Fri Dec 20, 2013
Hello Manfred. I'm thinking you're talking about buying in Manhattan, yes? A whole 'nother ballgame. If you are considering a Coop or Condo apartment, you'll be at the tender mercies of the boards that have some amount of sway there. They determine the minimum downpayment. Coops are looking at a minimum total dp of 20% and it certainly can be more. New development Condos may offer 90% financing through their lender and resale Condos often allow up to 90% financing. If you can get that kind of loan might be another question.

A Townhouse in Manhattan might have it's own financial requirements as per the owner since they look for well monied buyers. Brooklyn and Queens could be options but it all depends on what you want. What did you have in mind?
1 vote Thank Flag Link Thu Dec 19, 2013
The minimum down payment is 3.5% with an FHA loan as long as it will be your primary residence.
1 vote Thank Flag Link Thu Dec 19, 2013
thanks mark - if I intend to purchase the property as an investment, how much would the required amount differ?
Flag Thu Dec 19, 2013
Good morning. If you are referring to NYC, there are many answers to this question. The reason for this is, in residential sales each building's board dictates LTV (Loan to Value) levels. The range of what is required is very wide. Anywhere from 90% LTV choices all the way through No Financing Accepted. This is precisely the reason it is of great value for you to work with a Real Estate Professional in this very complicated and fast moving market. Real Estate Professionals in NYC have the knowledge and relationships you need in order to successfully complete a purchase in this amazing city. Please feel free to reach out so that we may discuss your individual needs and circumstances.

Dawn McCloud
Douglas Elliman
Tribeca Office - 90 Hudson St, New York, NY 10012
0 votes Thank Flag Link Fri Dec 20, 2013
You need to work with a realtor, and/or mortgage officer.

If its your first home purchase, you need people with serious experience to guide you through the process, and hold your hand. Many errors with regard to a properties condition, disclosures, requirements, processes, can be made while still having a transaction go through, only to hurt you later.

I myself, have closed over 250MM in mortgages and listed and sold millions more in NYC real estate.
You should definitely work with a PRO.

Good Luck

0 votes Thank Flag Link Thu Dec 19, 2013
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