Alex Ginzberg, Home Buyer in Brooklyn, NY

I'm trying to buy 1 or 2 bedroom coop apartment around 220K in Brooklyn, sheepshead bay area. My salary is

Asked by Alex Ginzberg, Brooklyn, NY Fri Aug 22, 2008

around 50K and I'm planning to put 10% down payment. I checked my credit score and it's around 720. From what I heard it's really hard to qualify for the loan right now. I was wondering if I have a chance of buying anything at all or should I continue renting which is a waste of money anyway. Thanks a lot.

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http://www.nytimes.com/2007/04/10/business/2007_BUYRENT_GRAP…
Buy-vs-rent calculator.
You think renting is wasting money? How so? You get a roof over your head, right?
Do you think you would be wasting less money if you brought a place? Don't forget mortgage interest, insurance, maintenance, RE taxes, etc
2 votes Thank Flag Link Tue Aug 26, 2008
Dear Alex:

If you have not taken the plunge yet be advised there are many co-ops in your price range.

Many coops will require 20% down payment so we suggest gifts or joint accounts with relatives to make up the remaining 10%. Steer clear of coops with Flip Taxes as lenders will make you add the flip tax to the downpayment. If you default they are covered for the 80% lent plus the flip tax when they sell your property.

Call us anytime to discuss.

Bonnie Chernin and David Rogoff
Fillmore Real Estate Branch #19
2926 Avenue J
Brooklyn NY 11210
917-593-4068 – David mobile
646-318-5031 – Bonnie mobile
davidrogoff@fillmore.com – E-mail
0 votes Thank Flag Link Tue Jun 21, 2011
You can buy a coop if have a very decent down payment.I have a junior 4 in sheepshead bay that might be what your are looking for.$189,000 negotiable 20% down is more the norm .in addition you should check with lenders to get a preapproval for a loan it is very helpful to show the seller that you have some borrowing power 720 is not terrible score and you can always work on increasing it by paying down some debt
0 votes Thank Flag Link Sat Mar 26, 2011
Keep in mind that with co-op, you don't own the property, you own shares in a corporation that owns the property, therefore, co-ops, as real estate invesments, bear much more inherent risk thatn condos and houses. With that said, a co-op with strong financials is not too bad, especially in Sh.Bay area. In terms of getting a mortage, New York lenders have experience with co-ops, your credit score looks good, I assume you are young, up and coming professional, 1-2 years out of college, so they might actually think you have a great potential. The co-op boards, though, might be an issue. Many of them want 20% downpayment and on top, they want you to have a certain amount left in the bank after all the closing as "reserves". Find out what that number is. In terms of the board approval process, I have noticed that young and employed usually are fine. One thing I can advise you about Sh.Bay-stay away from any street after Bedford, that is, streets numbered lower than Bedford, such as East 19th, East 13th, etc, are much more desirable-close to shopping, subway, canal. There are some well-priced co-ops past Nostrand, you can prob even get 1 bd for 150K, but not too many folks would want to take bus to get subway
0 votes Thank Flag Link Wed Aug 27, 2008
If you're question is based on your feeling that "renting [is] a waste of money anyway" then you have already answered your own question. But thats the easy part. The hard part is trying to budget whether or not you are going to be able to afford the payments. We know your salary and credit score, but we dont know if this is your gross salary or net, whether your job is secure, what household expenses you have, and how much you have saved for a downpayment and closing costs. Stop listening to people say that Real Estate is always going to go up and its always a good time to buy. The last few years should have shown you this advice is as good as "buy internet stocks." The question is a personal one. Do you feel financially confident enough to purchase a co-op right now? If you're answer is yes then you should begin "looking" into buying something. You should visit several different mortgage brokers and http://www.bankrate.com for rates, fees, etc., especially if this is your first closing. Also, keep in mind that buying in a co-op is much different than buying a condo. The price is cheaper for a reason. #1 The application and interview process is certainly very tough, especially here in Sheepshead Bay. I have personally dealt with several co-ops who have been close to impossible in terms of the items they have requested. Also, you should know that should you buy a co-op and need to sell the apartment, the purchaser ALSO has to be approved by your co-op board. This can affect many peoples decision as to whether they want to purchase. Knowing all of this you should make an informed decision.

The short answer to whether or not its hard to qualify a loan right now is this: Yes its harder but still possible. It all depends on several characteristics including credit history, income verification, debt/income ratio, how long you've had credit, if you own other homes, if you have student loans, etc.

Last piece of advice: Make sure you shop around. This is a much more time consuming process than some people make it out to be. But trust me, youll be better off in the end.
0 votes Thank Flag Link Sat Aug 23, 2008
There is a perfect program for you! You can qualify for a 5.125% on a 30 years fixed. Your income is under 64k and you are within purchase price limits. However, it will depend on what other monthly payments you owe, how much maintence at the coop is going to be, and your job stability. Of course, the coop has to allow the 10%. Which coop is this? Im an exclusive lender in a new development in sheephead bay so Iknow the area a bit. sunny_hong@countrywide.com
0 votes Thank Flag Link Fri Aug 22, 2008
Well, I wouldn't say it's hard to qualify for a co-op as much as it is finding a lender who is offering the loan you want. Fannie Mae has a great co-op program but not every lender offers it. You can actually put as little as 5% down.
I would be glad to qualify you if you'd like. I work for a national mortgage bank that offers the co-op program.
Thanks
Luke Allison
Flagstar Bank
828-777-8828
Luke.Allison@flagstar.com
0 votes Thank Flag Link Fri Aug 22, 2008
First of all, start off with a really dedicated mortgage broker who will work hard to find you a program that will work (contact me offline Gail@GailGladstone.com for a recommendation).

Second question: the mortgage broker will be able to tell you what you can afford and a really good Realtor will put in the time to find it for you (I can recommend someone in your area as well).

Real Estate always appreciates. It is made for long term investing and provides a home in the interim. Not only should you purchase, when you are ready to move up, keep it and lease it out for passive income. It will be the first step to owning many pieces.
Web Reference: http://GailGladstone.com
0 votes Thank Flag Link Fri Aug 22, 2008
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