I have a question about obtaining a mortgage with 10% down. Is that still possible in the credit crunch?

Asked by Teadrinker, 10128 Fri May 15, 2009

I'm looking to buy a co-op in the Bronx or Yonkers, NY and I'm what they call income rich and cash poor. I have very good credit and make close to $70K but not much saved for down payment, about $13K. I'm hoping to find something under $125K. From what I've seen from RE ads, most co-op boards will not accept anything less than 10 percent down, in some cases 20% or more. My concern right now is the lenders. I've been told a mortgage broker acquaintance that 15% is the new minimum to have for a down payment. I don't want to waste my time if I'm just gonna get rejected. Any advice would be appreciated. Thanks!

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3
Scot, , London, TX
Thu May 28, 2009
my organization can give you lona without any interst but you have to make a return of 5% annually for 20 years and payback after 20years the loan is granted to you.
if is Ok by you, contact Mr. steve
e-mail steveedu15@yahoo.com
0 votes
Therese L Ko…, Agent, Bayside NY 11361, NY
Wed May 27, 2009
First - you need to find a coop that will take 10% down. There are not many-but there are some. I have even come across no down payment just DTI (debt to income ratio) Call an agent that is familiar with coops in the Bronx or Yonkers. Chances are they will also have a DTI -how much you owe versus how much you make. The bank will lend if you have the income. No more just breathing- you actually have to have an income now-imagine that.

I tell my kids- it's not how much you make- it's how much you have left that counts. You make good money-START SAVING so you can pay off your mortgage quicker.
0 votes
Weichert Rea…, Agent, Bronx, NY
Fri May 15, 2009
Hi Smo,

You can still do 10% down, but you have to work with a Mortgage broker/Banker who will guarantee that. Banks will not do less than 10% on a co-op. That is absolutely true. I would work with a reputable Real estate agent who can put you in touch with a Mortgage professional that they have worked with that has recently done 90% financing on a co-op. I do work with such people, but if you want to find other agents and Mortgage professionals that you are familiar with that is fine. Just make sure that they are honest and that they are not promising something that they cannot deliver on.

I would work with a larger Mortgage brokerage firm that has many banking contacts. I would also suggest Wells Fargo as one of the individual banks to talk to (make sure the Mortgage consultant that you work with at any bank understands what a Co-op is. I know that sounds silly, but I have run into many situations where they are completely clueles when it comes to co-ops). They are sufficiently solvent to be able to give you the loans you need as opposed to many of the other big banks.

The one thing to watch out for in every transaction these days, is that the underwriting requirements for all loans is changing every couple of weeks, so the amount of last minute paperwork that people are being required to do is ridiculous. To make your life easier, just expect that in the 2 weeks before you close you will be asked for a bunch of paperwork that seems unnecessry including documents that you already provided to them. This is just what happens now. you will get frustrated, but take a deep breath ad you will get through it.

Let me know if you need more help.

All the best,

Joe Greene
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