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March 5, 2009
Percent down in NY vs. Elsewhere
So, I've been watching this show on TLC called My First Home and have been baffled by the fact that people are able to buy in MA or MS or MI with only 3% down. These are new episodes, so they can't be too dated...
Around NYC, though, I hear it's almost impossible to get financing without 20% down. Is this true?
Why the difference?
Comments
Yes you can through an FHA loan. It's actually 3.5% down now.
adahill@approvedfunding.com
Posted by: Adam Dahill at March 5, 2009 10:50 AM
It's also probably condo vs co-op.
The "co-op" idea is almost exclusive to NY. Most other areas are strictly "condo" markets. And the co-op model is generally what requires the 20%.
And I think it's just years of NY doing things the NY way, it's own regardless of sense.
(I just bought a 4 family with 10% down and a 30 year fixed loan, so "normal" situations do exist).
Posted by: christopher at March 5, 2009 4:28 PM
A building gets their money either way, so why would they care whether it's directly from the buyer or through financing? Is it a way of weeding less financially secure people out?
Posted by: alsawo at March 6, 2009 10:25 AM
Yes. But in the end it didn't help. Thousands of qualified mortgage holders in NYC who put down 20 pct. plus are now left holding the bag for the deadbeats around the country who got away with 5% down or less...grrr....we put down 42 pct. on our co-op, so at least we're not upside down....yet...
Posted by: Bolder at March 8, 2009 3:39 PM
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