As of this writing, here are the minimum Down Payment requirements for mortgage lending here in the NY Metro Area for the basic loan programs.
As of this writing, here are the minimum Down Payment requirements for mortgage lending here in the
NY Metro Area for the basic loan programs.
Veterans Administration Loans:
If you are a Veteran of the Armed Forces and you qualify for VA Guaranteed mortgage financing, then eligible Veterans are permitted to financing up to 100% of the purchase price of the home. That means no down payment.
FHA 3.5% Down Payment:
For other HomeBuyers, Non-Veterans, the program in the NY Metro region for qualified Homebuyers with the lowest down payment requirement currently is the FHA or Federal Housing Administration. The FHA Insures mortgages made by banks and Mortgage Bankers and allows for a down payment of only 3.5%. http://portal.hud.gov/hudportal/HUD?src=/topics/buying_a_home
The FHA is used most often by First Time HomeBuyers, but you don’t have to be a First Timer to use the FHA program.
The FHA will provide insurance for mortgage loans on 1-4 Family Homes, and FHA Approved Condominiums. FHA Insured financing is not available for Co-Op apartment purchases in New York.
After FHA, Conventional financing through either FannieMae or FreddieMac allows for a minimum down payment of 5%. The Lender will need to obtain approval from a Private Mortgage Insurance company (PMI) to complete the loan approval.
For Co-Op Apartment purchases, minimum down payment under Conventional guidelines is 10% down payment with PMI. The actual Cooperative may have different down payment requirements regardless of the financing you can obtain; best to check with your Realtor for the qualifying basics of any specific Cooperative.
I welcome Comments for all my blog entries. I will be happy to review and approve all legitimate comments provided by readers of tcurranmortgage.com. I do not permit unfettered access to comments for obvious reasons: mortgage spammers and their ilk. If you wish to Comment on any entry, please do so and I will quickly review and approve.
Thanks for reading tcurranmortgage.com.
Hope that helps!
Trevor Curran NMLS #40140