do I need to have a 10% down payment to buy a building in my neighborhood? Do banks ever offer a loan to someone with 5%?

Asked by Nancy Lane, Brooklyn, NY Tue May 1, 2012

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Tue May 1, 2012
You can get either 3.5% down with FHA, 5% down conventional, and if you qualify based on your income, you can get 3% down with a SONYMA loan. In addition, if you are a veteran, there is always 100% financing with a VA loan. Keep in mind that if you are looking to purchase a co-op, you cannot get an FHA or VA loan, and you would have to put 5% down for SONYMA, and the co-op most likely would have tighter restrictions.
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Nicely done.
Flag Tue May 1, 2012
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Fri May 4, 2012
Small correction Rhonda, that is 1-4 family. 5 or more is commercial. And yes, commercial generally requires at least 25% down.
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Rhonda Holt, Agent, New York, NY
Thu May 3, 2012
Hello, you left this question without one detail and that's what type of building are you referring to? If you are talking about a residential only 1-5 family then you MAY qualify for a FHA loan with only 3.5% down. If you are talking about a 6+ family or a building mixed with commercial property then this is considered commercial property and usually lenders want 20-25% down.

Speak to a qualified mortgage broker or mortgage banker to confirm qualifications and ask about all of your loan options and or grants so you can get the best bang for your buck.

Good luck with your purchase.
0 votes
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Wed May 2, 2012
I am a Mortgage Loan Officer with PNC Mortgage. Financing depends on your criteria,such as Income, Credit Score, Type of house or building you are buying etc. I would be more then happy to go over the many loan programs that are available to you. Yes there are programs with 3% down and so on. It all depends on what you qualify for and the kind of financing that is available for what you are buying.

Chris Miceli
Phone: (646)-623-2492
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Gail Gladsto…, Agent, 11743, NY
Tue May 1, 2012
Nancy, speak with a mortgage broker who will have the answers. There are programs that go down to even 3% downpayment, but a mortgage broker will have complete information for you.

I recommend my personal broker Dominick Sutera of Academy Mortgage and Dominick can be reached at 516-249-4800 or 516-655-2900 or email
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Tue May 1, 2012
I just realized that you said building, Nancy. Do you mean a commercial building, mixed use, multi-family? Please clarify. Also, are you the Nancy that contacted me through Trulia the other day? I did send you an e-mail back.
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, ,
Tue May 1, 2012
Hi Nancy,

Banks do offer loans with 5% down, but many different factors need to be known. This questions doesn't have a simple yes or no answer. Information about the property and about you (the borrower) is needed.

Should you have any other questions or concerns, feel free to contact me directly at 347-462-4210.

Thank you,

Rocco Guercio
Sr. Mortgage Specialist
0 votes
Mitchell Fel…, Agent, Brooklyn, NY
Tue May 1, 2012
Dear Nancydaddario:

It all depends on your qualifications. You need to speak to a mortgage banker or broker and get yourself pre-qualified to find out what you can borrow, how much it will cost and how much of a down payment you would need. If you are qualified you may be able to go with as little as 3.5% down. 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
Erica Wilson…, Agent, Huntersville, NC
Tue May 1, 2012
Yes you can put down 5% and if you go FHA you can put down 3.5%
0 votes
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