What are the current practice for downpayment on condos? (Islip: condominium, co-ops)

[wollytech]

Per subject title, in the past you can get away with as little as 5% down on condos and coops. What is the norm now if you want to have an easier time borrowing? Are banks looking strictly on 20% down?

Also is it still possible to find a reasonable price 1-bed condos on LI ($180<) that doesn't land you out in the middle of nowhere? I'm looking no further than Central Islip and need to commute into city.

[LIgirl74]

I know when we purchased our condo in 2004, we were able to put 3% down. Now our condo is on the market but unfortunately is out of your price range. My husband and I are relying on some equity from our condo but also have some money to put down for a downpayment. I believe we will have about 10% to put down. I've spoken with Bethpage Credit Union (where we will be taking the loan through) and b/c our credit scores are excellent, we are still able to take out a loan for 5% and above.

I have never heard of a co-op association that would accept 5% down. A condo is easier to get into and also easier to get a mortgage on. When you have a co-op board, you have to be voted in and they look at all your financials. They usually require at least 10% down.

As far as a condo for $180,000, have you looked on mls to see if there are any listed? My condo is located in Farmingdale and our development is not a pricey development but they are all listed in the mid $200's range. I believe co-ops are much less but just remember, they look at all your financials to be able to be voted in and also, when you go to sell one day, the co-op board plays a big role in who you sell too. So, if you get an amazing offer on your co-op when selling, and the board decides they don't like the buyer, you are out of that amazing offer.

Good luck with your search.

ETA: I just realized you said you commute to the city. It's too bad you can't afford more. Our condominium development is located in Farmingdale near the train station. I know there are a lot of co-ops in my area and not too far from the train. Maybe you should look at mls and search co-ops in Farmingdale.

[TomMoser]

If you are looking at Central Islip, look at Windbrook. Just a little bit further is Nob Hill in Ronkonkoma. Both are nice and have units in your price range.

[zulu400]

I went to a reputed bank and they said that since Nassau and Suffolk have been tagged as "declining" market and they said a 10% down on a condo is almost the norm these days....