Is 3% down on a 3-family, 700k possible?

not in this market .. to get a mortgage now you must have great credit and 20 % down . the days of 3 and 5 % are over . thank god

Posted by: guest at January 31, 2008 10:12 PM

if you have good credit, it doesn't hurt to try. You never know.

Posted by: guest at January 31, 2008 10:18 PM

Maybe you shouldn't be living in New York then, or maybe you should save more money. Life sucks. And maybe you should look in Queens where it is more affordable, duh. Don't overextend yourself just for the hell of it.

Posted by: guest at January 31, 2008 11:01 PM

OP, don't get discouraged by the asshole commenters. They abound on this site. I bet you'll get more constructive comments tomorrow when more people have had time to view your post. At least I hope so.

Posted by: guest at January 31, 2008 11:46 PM

Actually, where you went to school and whether or not you're a good person have nothing to do with your getting a loan. That's because they have little to do with your ability to pay it back. In fact, if it's hard to save while paying off your school debt, won't it be hard to pay your house off too? Telling someone not to overextend themselves is not rude or assholish. Expecting a house and a loan you can't afford is. In fact it's because of rude assholes just like this that the economy is tanking.

Keep saving until you get 20% - not 10, but 20. And why don't you find a small apartment you can afford first instead of a 3 family?

Posted by: guest at February 1, 2008 12:14 AM

"And why don't you find a small apartment you can afford first instead of a 3 family?"

Their budget is 700K, and there are 3-families in Bed-Stuy for this price that they are looking at. A "small apartment" in most Brooklyn neighborhoods will run you about the same--unless you buy a studio which is not worth it for many people who are looking forward.

Posted by: guest at February 1, 2008 12:44 AM

Actually, 12:44, since they only have 3% of 700k, there budget is whatever they can get with a 20k downpayment. If some bank will allow them to buy with only 10% down, they can squeeze themselves into a crappy studio in a crappy neighborhood with that.

Look forward all you want, but expect the banks to do the same. How can they realistically look forward to these people paying off a 700k loan when they can't save more than 20k?

Posted by: guest at February 1, 2008 12:52 AM

If I were you, I'd just try it. If you know you can make the mortgage payments, just apply and see what happens.

Posted by: guest at February 1, 2008 1:42 AM

Here's why this doesn't work at all. You talk about how hard it is to save. You've only managed to save $20,000 so far. But you are talking about taking on a $4,000 plus mortgage each month, in addition to insurance, taxes, heat, and all kinds of additional maintenance costs that come with a 3-family. By the time you are done, you are going to have very high monthly costs, even if some are defrayed by rental income (and don't get me started on having tenants who don't pay, empty apartments, etc.)

If you think you can handle this on your salaries, you should be renting a place for $2,000 (and there are definitely places to be had for that). So over a single year, you should have an additional $24,000 at least saved. So that fact that you've only saved $20,000 so far but think you can handle the cost of a 3-family means you haven't done a good job saving or you really don't make enough to cover these costs except perhaps if every single thing breaks right for you, which never happens (there is always some unexpected cost associated with home ownership).

I think that's why people are responding this way. Buying a house is a great idea, but you should buy with a cushion of cash, not with the hope that you'll have high rents every month and nothing will ever break.

Posted by: guest at February 1, 2008 9:42 AM

and to add to my post at 9:42 am, forgot to say that if you only put 3% down, you have to pay mortgage insurance, another extra expense.

Posted by: guest at February 1, 2008 9:46 AM

Buy an apartment that is not overpriced. When that appreciates (it will eventually), sell it, and you'll have a much bigger downpayment. And perhaps you'll have paid off your student loans by then, and be earning more. That's what others do.

Posted by: guest at February 1, 2008 11:55 AM

You may need to secure a HUD loan or Fannie Mae loan. If your property is in Bed Stuy it is still considered an area where they will finance more than in other areas of Brooklyn. These type of loans require you to pay a MIP (I think that is what it is called) but you get most of it back after one year. You can also apply for a construction/rehab loan (if the property is eligible) at the same time as your mortgage. Its hard to qualify for the 3% down, but the 5% down is more realistic. When we purchased our home we did 3% down in Prospect Heights. These type of mortgages also allow you to use a % of the income you will receive from tenants as part of your overall income when applying. It is a lot of paperwork. Good luck

Posted by: guest at February 1, 2008 1:35 PM