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Getting an FHA loan in NYC (Manhattan)

Hello

I have been interested in buying a studio apt in Manhattan.  I have gone to a few open house and talked several real estate agents about standard requirements for buying a condo in Manhattan.

1. One of the agents told me that most condos and co-op boards typically do not take FHA loans..is this true?

2. Another agent told me that most co-ops require a min of 20% down as well as 2 years of mortgage and maintenance in the bank...this is a ton of money!

I am a bit discouraged about the reality of being able to afford buying anything in NYC if it is going to be difficult to get a loan and if I really need to have that much money to put down.  

I have great credit (above 720), I have been at my job for over 3 years, I make 60k, and I currently have 20k for a down payment.  Not sure if I can afford to buy now or if it would be better to wait?





  • January 06 2012 - Manhattan
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Answers (6)

Its great to hear that real estate agents are becoming more helpful with tools and tips about the developments.  These developments need to get approved through FHA guidelines and policies which is very tough!! 
Same with coops, they need more skin in the game. Things have been ugly in the market, the coop boards want people to be more of a homeowner vs the popular 3.5% downpayment program with FHA.


You do have some FHA approved condos available, just need to find them.  Start working with an agent, they have approved list.  I have financed a dozen, let me know if you need further help!
good luck !

Kieran Rodgers
  • October 16 2012
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Profile picture for Go Huskers
"yes i can offer you help"
----
Really? How do you plan on doing that when "Style Finance Corporation Ltd" does not exist in the US as a licensed lender nor are you listed as a registered anything with the authorization to lend or solicit anyone to lend to.  Also, Caledonia Street Bradford is in West Yorkshire, UK, not in AK (ALASKA) and the zip code you use, 10006 is not a zip code for Alaska as you have indicated in your profile. I am curious why you are attempting to solicit loans in Manhattan with a correct Manhattan zip code, from a UK company and street address with Alaska listed as the state of origin. Are you lost?

"Style Finance Corporation Ltd - Loans - Bradford
  • Caledonia Street, BRADFORD
  • BRADFORD,AK 10006"
  • October 09 2012
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yes i can offer you help
  • October 09 2012
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[[promotion deleted by Zillow  moderator. Please see our Good Neighbor Policy for posting guidelines]
  • October 09 2012
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Profile picture for user894483
Every building have their own policy on down payment and liquid cash on -hand post-closing so don't be discouraged by what you're told about the 20% down plus 2 years mtg+maintenance. Although, I do think most buildings do require at least 20% (my building required 25% down).
I personally think it's great that buildings have certain financial requirements because it weeds out the people who probably at the current time can't afford to live in a particular building and trust me, you don't want to live in a building whereby your neighbors can't afford the maintenance and guess who ends up making up the difference.

Also something to consider is that some buildings have condo boards similar to co-op boards so you have to go through a pretty vigorous background check and interview before they'll consider you. That could be a financial burden as well because as part of the package you have to submit an application fee which is a few hundred dollars. You also have to consider the closing costs which is not included in the down payment. 
If you have $20k for the down payment, that basically means you need a sale price of ~$80k which is not likely in NYC.

Speak with a mortgage broker who can probably run your current income through their model to determine the loan amount you would probably qualify for, then base your search on that sales price to make sure you don't exceed your financial constraints. Not only do you want to get into the building but you'll also want to make sure you can pay off the loan.

Regarding the FHA, check out HUD's website for whether or not the condo you're interested in might qualify.

Happy hunting!
  • October 06 2012
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Yes most condos do not accept FHA. Contact a mortgage broker and get Pre-Qualified for a loan. You will know exactly how much to spend on a condo or to wait. There is nothing to be afraid of. Information is power.
  • January 07 2012
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