Actually you can only get these so-called jumbo mortgages with at least 25%, which we have thanks to previous real estate investement. So not over leveraged. And rich Wall Street bankers wouldn't qualify since the income limit for a couple is 200k I think. My point is that the extension also benefits people for whom buying real estate in Brownstone Brooklyn would be impossible were it not for the possibility of being a landlord. Also, as a long time renter, I'd rather have a landlord who lives in the building and is therefore more motivated and available to keep the rentals in good working order than some absentee investor type. How is that bad for renters?

Without this extension anything bigger than a two bedroom is out of bounds for people unless they have a huge amount of cash to put down or can afford the higher interest rates. So I don't just see this as benefiting only rich people.

Posted by: lucybb at November 16, 2009 9:37 PM in response to Extension of Higher Conforming Loan Limits a Boost?

BrooklynGreene:

The limits are higher for 2 or 3 families. Just google conforming loan limits 2009 and then look for the high cost areas. Off the top of my head, 3 families are around 925k.

And contrary to what the peanut gallery here would have you believe, the extension of the limits allows for someone like my husband and me--with a combined annual income of around 150k--to purchase a multifamily brownstone in Brooklyn with two rental apartments, resulting in a much lower monthly nut than if we were trying to buy a 2 bedroom condo or coop.

Lucybb

Posted by: lucybb at November 16, 2009 3:05 PM in response to Extension of Higher Conforming Loan Limits a Boost?

I'm curious: We have also been hearing from our loan officer that the extension of these higher loan limits may include some tightening of the loan to value criteria and/or income requirements. So while the higher conforming loans will continue it may be harder to get them. Has anyone else heard the same thing? I ask because we are preapproved for a loan on a house on which we have an accepted offer but the loan officer is pushing us to close by Dec 31st because he's not sure he will be able to get us the same loan in the New Year. And since we are not quite yet in contract, a Dec 31st closing it's looking harder and harder. We'd just as soon close in late January.

Lucybb

Posted by: lucybb at November 16, 2009 10:29 AM in response to Extension of Higher Conforming Loan Limits a Boost?

Thank you for these excellent and thoughtful responses. Slopefarm, in particular, you basically echoed the case put forward by our attorney, and then today sellers offered a 25k discount without us even asking, so I'm hopeful that we can all come to a happy compromise once we have had an inspector and a contractor come to look.

Vinca, thanks too for those links to the water damage research. It's a little over my head but it's good to at least get some of the basics when talking to the various players...

If you all have any additional thoughts on Richard Perri versus Heimer, I would welcome them.... But I don't want to be greedy!

LucyBB

Posted by: lucybb at November 12, 2009 10:25 PM in response to Water Damage/Mortgage Probs?

I went fairly far in buying a house that was going to require a FHA renovation loan and spoke to a number of contracters who were willing to work within the parameters or had already done so. It's not much different from a construction loan, with the payout coming from the bank and having to work on a set schedule. Off the top of my head, Beer, whom I found on this forum, had done FHA projects before. John of "Russ Bros" who I think has a google-able website was also willing to do FHAs, and so was Nick of Transcend (also found here). So I don't think it will be a problem. Good luck.

Posted by: lucybb at July 29, 2009 3:45 PM in response to FHA 203K For Renovation?

Thanks DIBS. Remodelista had a 10 easy pieces on white freestanding tubs and this one looks a lot like the Palais Pedestal Soaking Tub from Restoration Hardware, for 4k including the shower converter, which I would want. But this is making me see my husband's point about the difficulty in sticking to a budget during a renovation bc I am seriously lusting after a tub like this but that price won't square too well with my 12k bathroom budget... Looks like the washstand is from Restoration Hardware too--for another 1k. Well, one can dream.

Posted by: lucybb at June 24, 2009 3:10 PM in response to House of the Day: 212 Midwood Street

Can anyone ID the tub? I love it and want to put in my renovation file, in case we ever find the right house or the bag of dough we are missing in order to buy it. Thanks!

Posted by: lucybb at June 24, 2009 2:51 PM in response to House of the Day: 212 Midwood Street

DIBS, I'll be very curious what you think after you see the place. I live nearby and have been inside a few times, and while it is a very sweet house, it needs a tremendous amount of work, in my opinion. I think you'll have to replace all the floor joists (very slopey), maybe some supporting beams and the roof looks to be in bad shape. If you want to preserve the original flooring or the plasterwork on the first floor (which is gorgeous) that will just add to the price. This looks to me like the kind of place where you end up having to replace an entire back wall. AND there isn't that much full standing room on the top floor. I know people with similarly eaved wood frame houses who haven't been able to get permission from Landmarks to lift the roofline or put dormers in. Maybe they're are more lenient now. But I don't see how you can do elec, plumbing, the exterior, a kitchen, and two and a half baths for less than 500k. That said, I'd love to be proven wrong, and hey, if I had the money, I'd buy it renovated for 1.2 in a second. I think you could even get a little more.

Posted by: lucybb at June 22, 2009 3:28 PM in response to House of the Day: 329 Adelphi Street

i happened to pass by on Saturday and chatted briefly with the owner. i also thought the asking price seemed high given the size (and it's not the best location either). but the renovation and layout look exceptionally thoughtful and lovely. i wouldn't be surprised if this ends up going for around 1.3. apparently the owner is an architect, so i suspect the workmanship is as good as it looks in these photos.

Posted by: lucybb at June 1, 2009 1:28 PM in response to House of the Day: 130 South Oxford Street

Try Zerline Goodman in Brooklyn Heights. She has handled many TIC and so has a number of boiler plate agreements from which you can get started. If she is the lawyer that kept you waiting, there must have been some sort of a mix up. That sounds very unlike her. She's a pleasure to work with and always very responsive. Good luck! I'm curious, do you currently have a partner? My husband and I were fairly far along in a process of doing this, but our current partner can't sell her place and we're reassessing what to do. If you are looking for partners, we might be interested.

Posted by: lucybb at May 27, 2009 3:58 PM in response to Tenants in Common

There's a lot of info online about the FHA lending program. You can also try Miriam Ruiz at Wells Fargo. The tricky thing about is that you are limited to the amount that you can borrow for the purchase and renovation: 875k for a two family, so if you don't have a sizeable down payment, it can be hard to get all that onde on that budget. Good luck.

Posted by: lucybb at May 21, 2009 1:19 PM in response to Ballpark on a Gut Reno

You night try an FHA loan which combines financing for purchase and construction for properties that are not currently habitable. Not sure how it works if the whole thing isn't owner-occupied, but there is a decent amount of information about online. You can try Miriam Ruiz at Wells Fargo who handles them. Good luck.

Posted by: lucybb at May 19, 2009 9:24 PM in response to Financing a Shell Renovation

As an very occasional commenter, i find the discussions worthwhile despite having to scroll past a lot of nonsense. There are some very knowledgeable and helpful people on this site, and a lot can be gained from reading the comments section. I haven't ever felt attacked, although people have answered at times rather impatiently. I do think newcomers who clearly don't do their homework--by checking the archives first or doing a little research--can get picked on, but that's the nature of all blogs and it forces people to do a little more of their own leg work.

Perhaps there is a way to put a select group on moderated status, such as those folks who perpetually take the discussion off track or cross the line in some way. I've belonged to other discussion boards that follow this approach.

Lucy

Posted by: lucybb at March 27, 2009 11:46 AM in response to Let's Talk About Commenting

It is possible to buy a shell with a partner and reno it. I'm planning on doing it myself and have gotten fairly far into the process, but prepare yourself for a steep learning curve and a huge time suck the size of another full time job.

So you can do it as "tenants in common." There are lots of house in FG/CH owned under this arrangement. Basically it's like a two party coop, with all of you on the mortgage. It's definitely wise to work it out the details with a lawyer. Our lawyer, Zerline Goodman, who has handled many TIC agreements offer to hammer out our contract as part of the closing costs when we found a place. She's great. If you want to move forward, I definitely recommend calling her.

Also, if the house is a shell, you may have to get a FHA loan to finance the purchase and reno. If the place isn't habitable, you can't get regular financing. The borowing limit on a two family is 800k and they only require somethig like 4% down, but that would only leave you 150k for your reno. Depending on the size, this isn't much. A general rule of thumb is 100k per floor for a gut reno. All the quotes I've gotten for my own project fell fairly close to that. Of course you can do it cheaper, but if you want to split the utilities and have separate heating, elec, and hot water for each unit (which will make converting into condos easier down the road for reselling) then it will be hard to come in too much under that number. Also, there is a lot of oversight required for FHA loans, and the work needs to be done in a specific time frame, making it harder to do it on the cheap or to drag it out. But it is possible if you are willing to put in the time and effort. There's tons of information and knowledgeable people on this forum who can help guide you through all of it. Good luck!

Posted by: lucybb at March 19, 2009 4:40 PM in response to Buying Advice

A friend of mine is selling her place FSBO, also a one bedroom for around 500k, which is more like 800 sq feet and an even better location in Park Slope. check it out. it shows really beautifully and feels quite spacious. plus it's in great condition. doesn't need a thing.

http://916unionstreet4d.com/

Posted by: lucybb at March 18, 2009 3:49 PM in response to Co-op of the Day: 692 President Street

I see the hand of a stager here: the wooden bowl with the oranges, the colorful canvases, the carpet on the roof (??), which just goes to show far some cute furniture and a little taste along with decent photos can go to generate interest.

Posted by: lucybb at March 18, 2009 3:11 PM in response to Co-op of the Day: 692 President Street

dave, i thought the prior history clause was ridiculous too, since really it's the property not the landlord that determines profitability. but this was from manhattan mortgage, not some fly by night outfit. maybe the rules have changed since i last asked about 3 months ago. can you recommend another broker? also, lots of people in Clinton Hill and Fort Greene depend on rental units to help cover their mortgage. I don't think I'm suggesting anything unusual or particularly risky.

Posted by: lucybb at February 18, 2009 2:55 PM in response to House of the Day: 55 Cambridge Place

By the way Dave, I would be delighted to be proven wrong.

Lucy

Posted by: lucybb at February 18, 2009 2:37 PM in response to House of the Day: 55 Cambridge Place

Dave, I was told by a mortgage broker that since the credit crunch they won't consider the rental income as net income any longer unless you have already have a two year history as a landlord on another propert. Otherwise, they only consider a very limited amount. Here is the quote I was given on a property of 1.1 and 25% down. One had to show 6,333 monthly rental income (in addition to around 120k adjusted gross) to qualify for a mortgage of 825k. Obviously this property (and few others) generate that kind of income unless you are only occupying one floor. If a person makes more than I suppose they could show less rental income. Although with rental income of 3k a month (in the case of 55 CP) a person taking home 10k a month could easily afford the mortgage payment (around 5k by my estimation), the banks are being way more conservative.

Posted by: lucybb at February 18, 2009 2:36 PM in response to House of the Day: 55 Cambridge Place

Even if you can come up with the 300k down, it might be hard to get financing as banks will no longer consider rental income toward your net income to qualify. also i saw the house and it needs A LOT of work. all the floors are very sloped, which i would want to level, unless you don't mind your pens rolling off the desk and your bookcases toppling over on you. So I'm thinking there might be structural problems too. I would say a minimum of 600k reno, which is starting to make this look like less of a fire sale IMO.

Posted by: lucybb at February 18, 2009 2:14 PM in response to House of the Day: 55 Cambridge Place

back to the subject at hand...

i've looked pretty extensively into 203k loans, and you don't need to use FHA approved contractors. They just need to be licensed and insured for workman's comp. You do need to use a GC when going through FHA and you won't actually control your construction escrow account. It will doled out to contractor by a HUD consultant (who you pay $1000 to make periodic inspections) on a predetermined schedule.

Can I ask who gave you a quote of 5.8? Are you sure that didn't include a lot of points? The best we could find with only one point was 6% from Wells Fargo, and that was yesterday.

lucy

Posted by: lucybb at February 13, 2009 3:34 PM in response to Brownstone update cost

Thanks for all these responses.

Schultz, actually we haven't made up our minds to work directly with our contractor. If anything these posts make me lean toward using an architect since I'm not sure the potential $ savings would make up for the costs of making bad decisions or the time necessary to research the right ones.

CMU: I am pretty detail oriented and really like the reno process, but I have a young child and another one on the way and a full time job, so I have to be realistic about what i have time and patience for.

Brooklynrulz: Can I ask you if you were happy with your architect? If so, would you be willing to post his/her contact info? It would be great to work with someone who has worked with another client in a similarily limited fashion. And thanks for the tip about omitting finishes in the budget. We're planning on sourcing much of those things ourselves which we hope will help to control costs. But spending three hours on the phone to figure out the right hinges sounds pretty exasperating. Wouldn't a contractor be able to tell you how to hang the doors or at least how many and what style of hinges you need?

Very grateful, as always, for the collective wisdom of the Brownstoner community.

Posted by: lucybb at February 3, 2009 3:09 PM in response to The Need for Construction Plans?

Hi CMU:

I was hopng someone like yourself would chim in. You just need rough plans for permitting purposes. That is what Schnall does, but he won't consult on layout or the best heating systems, etc. You would have to figure all that out on your own.

Lucy.

Posted by: lucybb at February 3, 2009 12:48 PM in response to The Need for Construction Plans?

Thanks Jim for your response. Just to clarify, Schnall draws up the plans for permitting, files them, and acts as the expediter for 4k and HVAC costs another 1k. Also, we are trying to keep our reno budget to about 400k for the whole house (realizing that we might not be able to include everything such as resurfacing brownstone for that price).

Lucy

Posted by: lucybb at February 3, 2009 11:41 AM in response to The Need for Construction Plans?

Oh, and it's a landmark block.

Lucy

Posted by: lucybb at January 26, 2009 11:17 PM in response to For Wasder: Your deck & stairs

Thanks Wasder and jfss and cmu for your very helpful responses. Although my real estate broker and an engineer advised forgoing getting Landmarks permission, I am becoming convinced that that is too risky. But our problem is that one could argue the property is visible from a public thoroughfare. The house is about 200-250 feet in from the corner and there is a one story on the adjacent street over which you can see the backs of the houses. In the summer with leaves on the trees, you probably couldn't see our place easily, but right now you can.

I've recently heard of a number of people who have received Landmarks permission for double story decks, but if we can't get this passed, we're not sure we want the house (and our bid was just accepted today!!!) So I'm thinking I need to find an architect who is very knowledgeable not only about building codes but also Landmarks' habits and quirks. Anyone have any recommendations? I'll certainly try Schall. I've heard good things about him.

Gratefully yours,

an excited first time homebuyer

Posted by: lucybb at January 26, 2009 11:15 PM in response to For Wasder: Your deck & stairs

I was really excited about this property--love wood frame houses and it's a very nice block, but I was really disappointed when I looked at it. It does seem more narrow than 19 feet. And usually I can look past the rabbit warren effect of lots of little rooms but this just felt cramped and dreary. Also, it needs a TON of work, and besides the parlor floor, the details aren't intact. There are some fireplaces but not the original ones, and the exposed brick chimmneys have been painted with some kind of glossy shellack (Yuck). And finally, I heard that the adjoining neighbors are on the rowdy side--arrests, lots of traffic in and out, loud music at all hours... Sadly this is a case of too good to be true.

Posted by: lucybb at October 29, 2008 3:06 PM in response to House of the Day: 46 Cambridge Place

If I am understanding the ad correctly, one duplex occupies the first floor of the house, and then two rooms on the third floor, and the second duplex occupies the second floor of the house and then two rooms on the third floor. Seems odd... Do you think that means there are two staircases, or you reach the third floor through a common staircase?

Posted by: lucybb at October 1, 2008 3:12 PM in response to House of the Day: 352 Argyle Road

I looked at this and while it was thoughtfully renovated (including all separate mechanicals so well suited for two buyers), the price still seems high for only 16 feet of living space. As a previous poster noted, the living room on the parlor floor is very narrow, and there isn't much wall space for furntiure since the doors to the common hall take up a lot of space. Since each unit is sticly a two bedroom which limits the rent you might get, garden and/or roof deck notwithstanding, it's hard to make the numbers work. Assuming you can get it for 1.6 and put 360 down, that's over 8k a month including taxes. If you get 3k for the rental, you are still paying 5k to live in a smallish tweo bedroom duplex. Hard to see who that is going to appeal to... =

Posted by: lucybb at September 25, 2008 2:29 PM in response to House of the Day: 186 Washington Avenue

email is miss_bliss@earthlink.net. thanks 10:54.

Posted by: lucybb at June 27, 2008 11:29 AM in response to Sharing a Double Duplex?

Thanks all again for this input, particularly to 10:54 for laying out your own process. Do you recommend your real estate attorney and/or architect? If so, may I have thier contact info? I'm doublechecking but I don't think my RE attorney has ever handled a tenancy-in-common, and as lovely as she is, I'd much rather work with someone who has some experience.

Posted by: lucybb at June 25, 2008 11:37 AM in response to Sharing a Double Duplex?

Thanks for all who replied. One other question for those who have done this successfully or know people who have: how do you handle utilities if you find something where the utilities for each duplex aren't yet metered separately? It seems like it would be pretty expensive to change a heating system, for example. Probably less so to divide electric and hot water, but I don't really know. Thanks! I'm encouraged.

Posted by: lucybb at June 24, 2008 4:04 PM in response to Sharing a Double Duplex?

hi 11:51. you can call me at 347-529-4673 or email miss_bliss@earthlink.net.

Posted by: lucybb at June 24, 2008 12:03 PM in response to Sharing a Double Duplex?

thanks putnamdenizen. i looked at 49 putnam, which could be great for the right person. but it needs a lot of work, and at 899k, we couldn't get the construction loan. also, i know there are condos going up in the junkyard, but no idea of how tall and/or cheesy. a nice development would greatly improve that stretch of putnam, but no way of knowing that i can see at this point.

Posted by: lucybb at June 24, 2008 11:47 AM in response to Sharing a Double Duplex?

dear lucybb,

we must tell you that we also have an accepted offer on the very same house...we have fully investigated the water damage including an engineering report from richard perri, a masonry quote for about 25k to do the pointing, replace the cornice and scupper...we also have lots of information about financing with these conditions...

think we need to talk...
jdlcnm@gmail.com

Posted by: jdlcnm at November 17, 2009 10:05 PM in response to Water Damage/Mortgage Probs?