Give it to me straight

Asked by Sjb, Brooklyn, NY Tue Jul 10, 2012

I desperately want to be a home owner;I'm tired of paying rent. Unfortunately I don't have the money for the down payment. I make about $50,000 a year and I have $5,000 in saving/IRA. I want to live in a decent Brooklyn neighorhood in a one- family home or duplex. Realistically, can I be preapproved?

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Luke Constan…, Agent, Brooklyn, NY
Tue Jul 10, 2012
Sjb... I'm probably going to be the only one who is going to give it to you straight:


(Watch everyone else here give you some crazy answer after mine)

My advice to you;
Stay at one job for as long as you can
Save as much as you can
And most important of all: GET YOUR CREDIT RATING AS HIGH AS YOU CAN!!!

No matter what anyone says, in the long run, this is what works (Unless you have a rich Uncle)

Have a great summer Sjb!
2 votes
Pascual Paul…, Agent, Bronx, NY
Tue Jul 10, 2012
Save a Little More- Have good credit- That is stright
1 vote
Robert Tracey, Agent, Brooklyn, NY
Fri Jul 27, 2012

Thank you for your inquiry. I can definitely assist you in this matter. You can contact me at 718-376-4994 or

Robert Tracey
0 votes
Annette Levi…, , New York, NY
Wed Jul 11, 2012
I would need to know if you are a Vet to see if you qualify for 100% financing. If not will any relative give you a gift for the down payment? What does your credit look like? debts? This is the information you would need to supply to get a correct answer.
0 votes
Charles D'Al…, Agent, Brooklyn, NY
Wed Jul 11, 2012
Rather then do it this way, what I would do is set up a consult with a mortgage pro and see what I would have to do to make it work! Relatives, co signers or set up a plan to buy in the future. Knowledge is power ! Educate yourself to what you can do not what you cannot!
0 votes
Trevor Curran, Mortgage Broker Or Lender, Great Neck, NY
Wed Jul 11, 2012
Good morning Sjb,

Unless you are a Veteran of the Armed Forces, then, NO you are not qualified for mortgage financing with only $5,000 if you are looking to purchase in Brooklyn. You need more money towards down payment. You need to kickstart a heavy duty savings plan. If you received a large refund on your Federal tax returns the past 2 years, then I'd suggest sitting with your tax professional and changing your withholding to put more money in your paycheck and less money sent out to the US Govt. only to be refunded (without interest) later. Also, review your monthly budget and cut, cut, cut so that more of your hard-earned salary is allocated to savings. Lastly, you might consider a part-time job to bring in some extra sheckles every week and add to your savings balance. This is the classic way that we HomeBuyers save up to buy a home.

With an FHA Loan for a Brooklyn property purchase, assuming a Seller's concession to pay your closing costs, and a Purchase price of $420,000, you'd need approximately $18,000 for your required 3.5% down payment and other closing costs you pay upfront that are not included in a 4% Seller's concession (first year Homeowner's insurance, Home Inspection fee, Appraisal fee, Attorney fee). You'll also want to have at least one to three months mortgage payments in reserve. This helps you in case of emergency, and it certainly helps you with your loan approval as reserves----while not always required for FHA loans---certainly make for a stronger loan application.

Take your time and prepare thoroughly; the houses aren't going anywhere. A prudent and careful approach to buying your first home will help you truly enjoy the benefits of Homeownership stress-free!

I'm a Local Mortgage Banker and I've helped First Time Buyers like you for nearly 23 years. If you want to sit down face to face and review your current Prequalification status AND create a prudent ACTION PLAN to become a Homeowner, I'm available when you are.

Trevor Curran
NMLS #40140
Office: 516-829-2900
Mobile: 516-582-9181
Fax: 516-829-2944
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services
0 votes
Jeannette Ba…, Agent, Brooklyn, NY
Tue Jul 10, 2012
Not in Brooklyn!!!!! But in Staten Island...YES YOU CAN!!!!!!! If there is a will there is a way!!!!! First with your income your loan amount cannot exceed $200,000. giving you a mortgage payment of about $800.00 a month; with that type of mortgage payment it leaves plenty of room for you to pay the remaining bills in the house e.g water bill, heat, electric, along with insurance and cooking gas. As far as your down payment you have two options if you are a first time buyer you can put down as little as $6,000.00 and have the seller pick up the closing cost or put it in the loan but remember your full loan amount cannot go over $200,000.00 for you to be safe or you can apply for a grant with the Government. They have programs still today for first time buyers we're they can give you a grant for your down payment. Either way keep saving and make sure to keep your credit clean, remember the turtle may be slow but he always wins the race. Jeannette Batsikas
0 votes
Julie Thum, Agent, Brooklyn, NY
Tue Jul 10, 2012
Hello Sjb. Unfortunately no. Credit & income are the key factors in obtaining a pre-approval & then a loan and you also need money for closing costs. The days of "no money down" loans are gone. The BEST you MIGHT have been able to get would be an FHA loan, but even with that you would still need AT LEAST 3.5% down. With your income, you COULD qualify for a small co-op with a price tag of say approximately $150K, but then you would need a minimum of 10% down payment & some cash reserves as well. If your credit is really good (above 700), maybe you can get a close relative to loan you the downpayment (which requires something known as a gift letter) plus a bit more & you could purchase a studio or 1 bedroom co-op to start. SInce you're buying in a lower priced market & if you save your money, in a few years you can sell the apartment & possibly buy something larger as your salary will probably increase by then as well. Hope this helps.
0 votes
Don Tepper, Agent, Burke, VA
Tue Jul 10, 2012
No. Good answer from Luke.

It's true that if you're a veteran, there's 100% financing. But you don't say you're a veteran, so I'm assuming you aren't.

Besides, you need some cash cushion. Here it is straight: $5,000 is nothing. And if you tap your IRA, there are penalties and the amount you withdraw is taxed as ordinary income. (I'm not an accountant; check with an accountant for details.) That means you might end up with about $3,000 if you emptied your IRA. Don't do it.

Feel free to check with a good lender--the operative word there is "good." Most of the crazy loans that you saw in 2004 and 2005 are gone--you know, the 125% loans with negative amortization. That sort of thing. But still, be careful. Interest rates are now around 4%. If someone quotes you, say, 9%, with some sort of balloon payment--something other than a nice, simple 15- or 30-year mortgage, maybe an ARM with some firm caps--run away! You should know where you are, where you stand, and what your prospects are. But right now, honestly, they're not good.

Hope that helps.
0 votes
Jack Menashe, Agent, Brooklyn, NY
Tue Jul 10, 2012
Best bet is first to get pre-approved, try one these lenders;

Cross River - Alex - 917.520.1515
HSBC - Mike - 917.604.4320
INVESTORS - Larry - 917.696.2360
1st Meridian - Chesky - 917.763.5008
Universal Mortgage - Ezra - 718.210.1113
PanAm Mortgage - Jack - 917.770.8934

Once that is done you can research my site @ to help in finding a house, co-op or condo. you will need 20% for most co-ops & an FHA loan may be possible for a single family home or condo but we need to find you an approved one, sometimes not always an easy task.

Good luck in your search & look forward to hearing from you.


Jack Menashe
0 votes
Mitchell Fel…, Agent, Brooklyn, NY
Tue Jul 10, 2012
Dear Sjb:

If you are a veteran of the US military you may be able to go with no money down. Aside from that, most buyers have to come in with a down payment of 3.5% or more. In order to make an informed decision, you need to speak to a mortgage banker and get your self pre-qualified. This process does not cost you anything, but doing so will show you how much you can borrow if anything and how much the loan will cost you every month. That is your best bet, get pre-qualified through a bank!

If you need help doing that or if I can be of further assistance, please let me know. Good luck!

Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
0 votes
Madeline Pad…, Agent, Brooklyn, NY
Tue Jul 10, 2012
Hi SJB - please speak to a mortgage person he will give it to you straight -
try Tony Cetta @516-3824791 - you must apply for FHA - so its a very very close call.
good luck
0 votes
I worked with him when myself and my siblings were trying to get approved together. I guess this is a sign. Maybe I'll contact him when i'm fully ready
Flag Tue Jul 10, 2012
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