1st Time Buyer Programs for Co-ops

Many buyers think that a down payment of 20% or more is required for a co-op. However, that’s simply not true with all buildings! While each building has its own set of By-Laws and you will have to abide by their down payment requirements, there are a large number of Co-ops in New York that allow for less than 20% down payment.

FHA and VA do not currently finance co-ops, but conventional loan products through Fannie Mae and Freddie Mac have some great 1st time buyer options. Conventional loans will usually allow a qualified buyer to put as little as 5%, and sometimes as little as 3%, down, so financing can up to 95% to 97% of the purchase price is available. In almost every transaction, the down payment can be from a gift from a family member.

On higher priced properties with larger (over $970,800) mortgage amounts, the down payment requirements will be more and the loan will fall out of the conventional category and into a “jumbo” mortgage. But in the case of most 1st time buyers, the prices are going to likely be within the conventional loan limit.

In addition to the conventional loan products, the State of New York Mortgage Agency (SONYMA) also has some good fixed rate products. These products also allow for down payments of less than 20%.

Before you make an offer on a property, please feel free to give me at call at (917)277-3363 or e-mail me at [email protected] and I can help you understand the down payment requirements for your transaction.