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Mike, Home Buyer in Yonkers, NY

Mortgage issues in westchester

Asked by Mike, Yonkers, NY Wed Jun 11, 2008

We are in contracts for a home in Tuckahoe. We are putting down 20% our financial are in order and the house appraised out for our offering price. The banks are regusting 75% financing. They want 20 down and adding 5% because westchester is flaqged for a declining maket zone. Is this something new. While i'm fortunate to have 20% down....there is not to me people out there with 20% let alone 25%. Is this happening to anyone else. It came back from three reputable banks. I guess the banks are really running scared at the moment.

Help the community by answering this question:


...I almost forgot... go to my company web site at and look under "Service Providers" for Westchester mortgage brokers... especially try

DML Mortgage - James Pugliese - 914-497-2886 or

Wells Fargo - Wayne Slaughter - 914-261-3502

Phyllis Lerner
Associate Broker
Legends Realty Group
1 vote Thank Flag Link Sat Jun 14, 2008
Try a mortage broker instead which can offer you a variety of mortgage products from a variety of lenders... you DO NOT pay more when dealing with a broker... brokers get paid by the lender for bringing them a viable customer... BUT the broker works for YOU, NOT the lender...

also... if you are a member of a credit union check with them... they are not hurting like banks since they were able to avoid the subprime mess altogether and their lending practices are most of the time much more flexible... if you are not a member of a local credit union you may want to check with them what it takes to become one... their mortgage products are usually cheaper and underwriting standards are not as stringent...

Hope this helps.

Phyllis Lerner
Associate Broker
Legends Realty Group LLC
1 vote Thank Flag Link Sat Jun 14, 2008
Wow. It looks like the entire county. Scarsdale - check, Armonk - check. Amazing. Here is the list by zip codes:

Good luck Mike. We used to live in Tuckahoe and really liked the little town. Too bad Rockwell's closed, they had really really good bar food.
1 vote Thank Flag Link Thu Jun 12, 2008
This is happening in a lot of states. You are not the only one. When fannie mae deems an area a declining market, they cut your value on your appraisal by 5%. You then need to come in with more money.
Web Reference:
0 votes Thank Flag Link Fri Jun 20, 2008
Can you ask the seller to lower the price to make up for the difference? Does your contract has a mortgage contingency?

Say you put 100k down to buy a 500k home and the down-payment requirement goes from 20% to 25%. Now a buyer would need to either bring 125k cash on the table or the seller needs to reduce his price to 400k to make the sell. Since its unlikely that buyers suddenly have more cash available, the higher down-payment requirement should drive house prices further down. In this case by 20%!

You might want to renegotiate your offer. Best of luck.
0 votes Thank Flag Link Fri Jun 20, 2008
For a while, Westchester was not considered a declining market, as was the real estate market considered to be on a national basis. Recently, this has changed and as I'm sure you are aware, the market here has now been affected. I have heard of your situation occurring with other home buyers so you are not alone. Good luck in purchasing your new home!
0 votes Thank Flag Link Wed Jun 11, 2008
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