Hi - i was wondering how much downpayment would be require for this property, i am a first time home buyer, i have a good credit (690-720) Thanks.

Asked by llanerito05, Elizabeth, NJ Tue Jul 31, 2012

This question is about this property: http://www.trulia.com/property/3074580326-351-S-Broad-St-202…

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Mary Petti, Agent, Edison, NJ
Tue Jul 31, 2012

This particular condo already has a contract on it, although they are apparently accepting back-up offers.

Since it's a short sale, it can be 30+ days before the first buyer will know if their contract and offer price are accepted by the bank, and before you offer could even be presented to the bank (if the first one fell apart).

In the meanwhile, you could be missing out on other places that meet your needs.

Meanwhile, speak to a qualified mortgage representative to see what your financial comfort zone is for down payment, purchase price etc. This way you can contact a real estate agent to help you find homes that meet those parameters.
0 votes
Laquita Baez, , New Jersey
Tue Jul 31, 2012
Consult with a mortgage lender that can give you financing information and let you know
how much of a home loan you may qualify for.
I am here to assist if you would like to set up a private viewing for the condo.

Laquita Baez
Licensed Realtor in NJ and GA
0 votes
Mary Petti, Agent, Edison, NJ
Tue Jul 31, 2012
Hi there,

With any mortgage, if you go FHA the minimum down payment is 3.5%. HOWEVER, condos must be on an approved FHA list, and these condos don't appear to be FHA approved, so you cannot get an FHA mortgage.

Of course you can put a down payment of les than 20% for a conventional loan on any home, but it makes it slightly harder to get a mortgage and you will also have to pay a mortgage insurance premium until your equity in the home reaches the equivalent of the 20%.

Additionally, this particular unit is a short sale, and although it currently has an offer, the listing in the MLS says back up offers are welcome.

If you are looking for something in the area, feel free to give me a call.
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Yolanda Esco…, Agent, Westfield, NJ
Tue Jul 31, 2012
You need at least 3.5% in order to qualify for a mortgage.
Please call me for more details at 908-418-1616.

0 votes
x, , 10021
Tue Jul 31, 2012
Good question. This will depend on several factors. The first being - is the condo project approved by FHA, Fannie Mae or Freddie Mac? I checked FHA's site and it doesn't look like the condo is approved - see this link: https://entp.hud.gov/idapp/html/condlook.cfm

I then checked Fannie Mae for eligibility - not on the list - see this link: https://www.efanniemae.com/syndicated/documents/dps/condopud…
As of 7/30/2012

Also checked Freddie Mac for you - ther isn't a quick list to view, but you would have to review the requirements with the condo association - check this link: http://www.freddiemac.com/sell/factsheets/condo_projects.html

Keep in mind that this is not exhaustive. This is simply a quick reference. There are ways to get the condo on the approved list by working with a mortgage lender, but there are several hoops to jump through to get the approval. Not saying it can't happen though. I would check with the listing agent to see if the condo is in fact approved with any of the agencies I mentioned. It might not be on their list yet.

If the condo is not approved, it is for reasons such as, too much investor concentration, too many untis in default, the homeowner's association is not controlled by the residents (it is under the builder's control), common areas not completed, etc. Situations like these fall into the non-warrantable condo category. Here is a link to a blog that does a good job explaining this http://activerain.com/blogsview/560254/what-is-a-non-warrant…

There are lenders that will take on non-warrantable condo financing and I can help you with this. These loans are much harder to find, but they are available.

Now finally getting to your actual question. If you can get the condo to be approved by FHA, you would only have to put 3.5% down - no questions asked. If you can get the condo approved with Fannie Mae or Freddie Mac, you can get away with 5% down. 660+ score may cut it to get this, but you will also have to have a strong credit profile, a couple months of reserves and a low debt to income ratio. The availablility of this low down payment Fannie or Freddie loan would have to be run through an AUS (automated underwriting system). There are two layers of underwriting that occur whenever you apply for a loan with less than 20% down with the Fannie and Freddie loans. First layer is the bank's underwriter. The second is the private mortgage insurance provider. This leads to a much tighter underwriting process.

Lastly, non-agency (non Fannie/Freddie) loans minimum down payment requirements are all over the road. You may be able to get a 5% down loan, but more than likely, you will need 10% down. These are a little harder to get private mortgage insurance on. Typically, these loans factor in the mortgage insurance into the rate 0.5% -0.75% higher rate paid to the lender (LPMI - lender paid mortgage insurance).

Please feel free to get in touch with me if you want to discuss this further.
0 votes
Ankit Duggal, , Elizabeth, NJ
Tue Jul 31, 2012
You can either purchase it with a 3.5% downpayment. Or if you can qualify for a special mortgage from the New Jersey Housing and Finance agency depending on your unique qualification and situation. Hope that helps
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Darlene Matt…, , New Jersey
Tue Jul 31, 2012
I would be happy to assist you through this process. Email me if you want more informatoin on your preapproval.
0 votes
Darlene Matt…, , New Jersey
Tue Jul 31, 2012
You should first be prequalified then make appropriate down payment, which should be 3-5 %
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