If you feel you have fair credit, go to your local nonprofit housing group for credit counseling. They will go over your credit report with you. If you are buying a FHA approved condo, then you need 640+ If you are planning on buying a non FHA approved condo then you need at least 680 if you are putting down less then 20%. If your scores are less then 640, the counselor will tell you what you are doing wrong and what you should be doing. Listen to them and then your scores should go up while you continue to save money.
The amount that you have to put down when purchasing a condo will depend on the development that you are purchasing in and the bank that will be financing the loan for you to purchase the condo. Each development has their own criteria and so does the banks, there are FHA approved condos that will allow you to put down a minimum of 3.5%, non FHA developments usually require anywhere from 10%-25% of the purchase price. I would suggest that you meet with a mortgage professional first before you begin looking at potential condos you maybe interested in. Aside from the down payment you will also have to pay closing costs and most condo boards, expect that you have anywhere from 6 months to 1 year of mortgage and maintenance in reserve funds. You should have you attorney review all offering plans and bylaw of any development you are interested to make sure that it is good financial investment for you.
Happy New Year, and good luck. If you have any additional question, please do not hesitate to give me a call.
Licensed Real Estate Agent
Cruse Realty / Cruz Network
The other option, if you are a first time homebuyer is a SONYMA (State of NY Mortgage Agency) loan. This is for first time homebuyers and allows you to put down a minimum of 3%, the ability to have that down payment gifted, and finance closing costs as well. There is qualifying criteria that you must meet as well. Your best bet is to speak directly to a mortgage professional so they can properly assess your situation and guide you accordingly.
I can recommend an excellant one that specializes in the above mentioned loans. Feel free to message me if you are interested.
Licensed Associate Broker
Accredited Buyer Representative
William Raveis Legends Realty Group