After speaking to an FHA underwriter yesterday I learned that FHA is now lending on coops, which was news to me. While most coops in Manhattan require that the purchaser put at least 20% down when they buy their apartment, there are a handful of buildings that will allow buyers to put only 10% down. In the current lending environment however, there are no conforming lenders that will lend 90% on a coop. Most will go to 80%, and only with stellar credit. This is where the new FHA coop programs come into play. For purchasers who only have 10% down and want to buy a coop in Manhattan or one of the outer boroughs, there is now an option: FHA. Granted, their are associated fees and mortgage insurance costs, but for those that either want to preserve cash or don't have enough cash to get to 20%, there is now a way to get into a coop with only 10% down.
I have a client who is looking at a 2 bedroom on Avenue C in the East Village that is in a coop that allows 10% down...so if he decides to move forward an we get an accepted offer, I may have some first hand FHA coop experience to blog about! With all of the bleak mortgage news over the last couple of months, it is nice to know that there are still some new programs coming to market that actually may offer some help.
Rich Bouchner
Managing Director
Rich Bouchner
Managing Director
Commodore Property Group
Commodore Property Group's home page: www.cpg-nyc.com
My blog: www.gotham-realestate.com
Current Listings: CPG's Current listings
I am the owner of Commodore Property Group. l live in Harlem and work through out all of New York City. If you are looking for a condo, coop or brownstone in Harlem or any section of Manhattan or Brooklyn, please feel free to contact me.
Whatever will get the lenders to lend is good for the real estate market anywhere.
I agree!
i have only found a handful of "FHA Approved" condos to choose from. This is the only loan I can really work with right now.
My question is where can i find a broker or a list of FHA approved condos? Its been very difficult to find properties other than Jersey.
Hey - In Market...feel free to give me a call at 646 825 5734 and I will be happy to help w/ FHA condos in NYC. Thanks, Rich