Emily Jennin…, Renter in Mamaroneck, NY

how much should we put down on a condo in 200,000 range? And what options do i have with my fiance and I have fair credit?

Asked by Emily Jennings, Mamaroneck, NY Sun Jan 1, 2012

Can my fiance and I buy a place with fair credit and how much would we need to put down on it if the condo ranges in the 200-215,000 dollar range?

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6
Emily,
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.
0 votes Thank Flag Link Tue Jan 3, 2012
Yes, it depends on what you consider "fair credit" but 640 is the minimum credit score. If the condo association is FHA approved you can purchase the property with only a 3.5% down payment. If it is not, then you will need a down payment of 5-10% depending on your credit and the condo requirements. So the absolute minimum down payment would be $7,000. If you have any further questions feel free to reach me directly at (347) 242-1206.
0 votes Thank Flag Link Tue Jan 3, 2012
As for the downpayment, much will depend on your type of loan; therefore visit with any licensed loan officer, after reviewing your financial information, income, credit, debt, assets, etc., a determination on qualification can be made; the type of loan, how much, how much down, etc. Be aware that a mortgage pre-approval letter is required in order to determine your price range and for any offers to be taken seriously.
0 votes Thank Flag Link Sun Jan 1, 2012
Dear Emily,

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.

Nirmala Caraballo
Licensed Real Estate Agent
Cruse Realty / Cruz Network
Tel.: 646-479-7873
E-mail: nhcaraballo@yahoo.com
0 votes Thank Flag Link Sun Jan 1, 2012
Hi Emily, The down payment depends on the type of loan you get. If you get an FHA (Federal Housing Administration) you can put down a minimum of 3.5% and finance some of your closing costs. The FHA loans are great for people in your situation but not all condos can be funded by the FHA. There is an FHA approved list that can be checked to see if a condo complex you are interested in are on it.

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.

Sincerely,

Christopher Pagli
Licensed Associate Broker
Accredited Buyer Representative
William Raveis Legends Realty Group
914.406.9023
0 votes Thank Flag Link Sun Jan 1, 2012
There are two amounts in an offer where you put down money. One is the loan ratio where you often have to put down 10 or 20% to the lender. The other is earnest money and that can be any amount to show you are serious about buying it.
0 votes Thank Flag Link Sun Jan 1, 2012
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