Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Most buildings have rules about how little you can have for a down payment. There are buildings where mortgages aren't permitted at all, as well.
That’s were a 2nd 20% loan would come into play, at least that is my understanding, because it is smaller it could be maybe a 5 year or 10 year loan, not grouped together with your traditional mortgage.
I put zero down on my apartment. But it's a condo, which normally does not have down payment requirements. Coops do. My deposit was used to cover the closing costs, though!
Down payment requirements will also depend on your bank. Some have no problems with 0 down, but some want 5 percent, or even higher.
I put zero down on my apartment. But it's a condo, which normally does not have down payment requirements. Coops do. My deposit was used to cover the closing costs, though!
Down payment requirements will also depend on your bank. Some have no problems with 0 down, but some want 5 percent, or even higher.
Where in NYC do you live? I prefer a condo myself and I don't really want to put all my savings into the down payment. Do you have a board in your condo?
Where in NYC do you live? I prefer a condo myself and I don't really want to put all my savings into the down payment. Do you have a board in your condo?
Parkchester, Bronx. We have a condo board.
One thing I've learned. It's gonna go either or....down payment or closing!
Many coops in NYC require 20%-30% of cost of the unit be paid by the buyer via non-credit means. They will only allow the other 70%-80% to be financed. These units are governed by coop boards and they verify your liquidity to ensure can come up with the requisite down payment. There's this thought behind this that if you can't come up with the 20% down payment, there's a possibility you may not be able to pay the maintenance and carry the cost of the unit.
Condos are less restrictive in this regard. However, they are not as common in NYC. Condo purchases are similiar to homes where you can put down 10% (in some cases 5%) and finance the rest. Splitting the loan 80%, 15% for example, just helps avoid paying the PMI (personal mortgage insurance) that will apply if you put less than a 20% down payment. However, the smaller loan is usually at a higher interest rate and for a shorter period of time.
Many coops in NYC require 20%-30% of cost of the unit be paid by the buyer via non-credit means. They will only allow the other 70%-80% to be financed. These units are governed by coop boards and they verify your liquidity to ensure can come up with the requisite down payment. There's this thought behind this that if you can't come up with the 20% down payment, there's a possibility you may not be able to pay the maintenance and carry the cost of the unit.
Condos are less restrictive in this regard. However, they are not as common in NYC. Condo purchases are similiar to homes where you can put down 10% (in some cases 5%) and finance the rest. Splitting the loan 80%, 15% for example, just helps avoid paying the PMI (personal mortgage insurance) that will apply if you put less than a 20% down payment. However, the smaller loan is usually at a higher interest rate and for a shorter period of time.
'Many co-ops'??? No, Virtually ALL Co-Ops require at least 20% down but many even in Queens want 50% down or more. Condos?? Same rules at least 20% and subject to condo board approval. In a tight real estate market and in a city where realtors, landlords, developers & car dealers are given preferential treatment with huge tax breaks & allowed to skirt the law in so many ways, they can set any rules they want.
Don't forget --- you need to be approved by the autocratic co-op or condo board who can reject for any or no reason just as long as it isn't discriminatory (but anyone who has lived in NYC all their life knows that racism & discrimination is alive and well in NYC).
Housing prices & rents are as what someone on the CT board said about prices in So Cal -- Just Silly & Absurd, and as someone else said here --- probably the biggest rip off in the entire USA.
Unless the OP is making well in the mid six figures, has at least 20% down and mommy & daddy to pull strings, I wouldn't consider trying in this area given the economic realities of today.
And BTW, how naive can some people be?? The mortgage industry is imploding because of these 80/20 & 100% financing deals. I can tell you that they won't be as eager to lend money for co-op apartments which aren't even real property and many of these crap condos going up overnight all over Queens which start at over $700,000 and require 20% or more down plus approval by the developer.
80/20 should still be OK in NY. Unless it's a co-op, I don't see who would actually be able to tell you that there is a minimum down payment required.
Just keep in mind the interest rates at least on the 20 are probably not the greatest right now.
Are you kidding, given the realities of the mortgage & housing industry today?? Maybe you read something other than the NY Times or NY Magazine where they want to keep up the housing & rent bubble in NYC.
And what do you think the total monthly payment on an average 'Non Co-op" property in this area (anywhere in the greater NYC area) would be given this scenario? Condos in Manhattan & Queens start near 1 Million for a studio. Even though all those buildings require at least 20% down + condo board approval, they are usually 100% sold out before construction is even completed.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
80/20
