Home Buying in Queens>Question Details

Betsey, Home Buyer in Queens, NY

Looking to buy a coop in Queens. My hubby and I are first-time buyers, & have basically scrounged up enough

Asked by Betsey, Queens, NY Tue Aug 19, 2008

cash for 20% - the issue is that we will have very little savings left-over for the coop board to consider. Basically, my husband and I weren't anticipating falling in love with a place (we have been saving for two years now) - but, realistically, we found a place we love but are coming up just shy by about $4K. Should I grovel to my parents and ask if they can gift me some money? And, lastly, how strict are most coop boards in Queens? This particular area is nice, but not anything nearly close to Manhattan standards; not even taking into consideration the downward market trends and economic hardships, lately. We have virtually no debt (no student loans, no automobile loans), excellent credit (above 750), we're preapproved for a mortgage (letter in hand), and have reliable jobs (hubby is a NYC employee - NYPD) ...

Any ideas? Advice? Should we pass up on our dream home, because we're coming up $4K short? Also, we can easily recoup this amount, but it will obviously take us 1-2 mos.

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Hi Betsey,

Joanna Lane has given you lovely advice about offering a little less, which is what I was about to say until I read her comment. The down payment assistance programs are slated to expire on Oct 1, so you also have time to try and receive funding from them. If you are funded and close before Oct 1 it may also be a solution. Google Ameridream and Nehemiah and see if you can get a down payment grant before the deadline. Wishing you well with your purchase.

Regards, C.
Web Reference: http://www.TannStarr.ws
2 votes Thank Flag Link Fri Aug 22, 2008
You have everything so perfectly worked out, and it sounds like a great plan, why wouldn't your parents want to help you achieve your dreams? However, try these options first:

1. Offer $4,000 less for the condo, and let them know it's a firm offer. All asking prices are negotiable. They can only say no, but equally, they may accept it, or counter offer $2,000, then at least you have halved your problem.
2. you can ask for an extended closing date, although I would hardly call 2 months extended. By that point you would have what you need, especially if you can get them to drop the price a little at the same time.
3. If none of the above works, talk it through with parents. It's only a temporary loan to help bridge the gap for a few weeks.

In the overall scheme of things, there's not much standing in your way - don't let it stop you achieving your goals. Go for it!
2 votes Thank Flag Link Tue Aug 19, 2008
Coops boards can vary. Not all require 20% down. You should ask if they will consider 10%. Some will. If your husband is in the NYPD then he may qualify for special programs (5.875% on 30 years fixed). My brother is on the job as well. We have special programs for someone in your situation. However, the coop board must allow other types of financing except just 20% down. Depending on how strict the board is, they will determine whether you can purchase there. If you qualify with them you should have no problems with the bank. sunny_hong@countrywide.com
1 vote Thank Flag Link Fri Aug 22, 2008
I am selling my co-op in Queens if you are interested. email me k23ms@aol.com Kenny
0 votes Thank Flag Link Thu May 14, 2009
One area you might want to check into is his pension plan. He can get a statement online, and he has contributed since he joined the force, so if he has about 5 years on the job, he should be able to borrow the 4k no problem.
0 votes Thank Flag Link Fri Aug 22, 2008
I see that I was tired, and that it wasn't the bank amount but the co-op 20% hurdle that needed to be mounted. So yeah, lowering the offering price by 4k would almost do it, but even then an additional $800 would need to be coughed up. (80% of 4k= 3200, and 4000-3200 =800)

So any lower "firm" offer should probably be 5k less, because 80% of 5k is 4000.
0 votes Thank Flag Link Fri Aug 22, 2008
Also, Is there a su-su in the tru-blu?

Seriously, I know for teachers there are some banks that specialize in teacher loans, maybe there is one for the NYPD members. Best to ask the PBA rep, or call the union.
0 votes Thank Flag Link Fri Aug 22, 2008
Yes, hubby can take loans against his 457, if he has contributed. Seems as though the total amount that he could borrow between the pension plan and the 457 is 50k. The website shows that it could cost you in terms of lost earnings within the 457 plan, but for a good deal, it might be worth it.

You don't mention your job, any 401ks, any IRAs or any other assets, so I haven'tt commented on them.

Good luck,
Antolin
0 votes Thank Flag Link Thu Aug 21, 2008
First off, if you want to live by the beach in the Rockaways, we have some coops that do NOT require 20% down. In fact, one building has NO restrictions regarding financing. Earlier this year we had a buyer walk in with only $5k cash. However, a lot has changed in the lending landscape since then.

Secondly, there is a program call the HomeFirst Down Payment Assistance Program. It sounds like you probably will be over the income levels, however I figured I would mention it anyways.
0 votes Thank Flag Link Tue Aug 19, 2008
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