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By the time these bank appraiser "experts" finish their appraisal the market has already passed them by. That's why Cash is King. You don't have some underwriter getting in the way and potentially killing a deal. Sellers love cash so if u have it use it and forget the bank. Cheers!
Appraisals can be questioned by the lender or broker .
We had this happen recently. It was called a "field appraisal" by Chase. The underwriter was not satisfied wit the original appraisal, there were a few errors on it. The 2nd appraisal came in a little ,lower and we had to renegotiate the deal. Quite frankly the apartment should have appraised higher from the start, both appraisers missed certain elements. The big factor was the high floor view North and East which included the Empire State Building. This was a prime West Village co-op. It turned into a small nightmare, however the buyer wound up benefiting.
There can be a number of reasons for a lender requesting a second appraisal. You're not being charged so sit tight and you'll get your loan. These days lenders are very cautious and with good reason; they now are being held accountable.
E. S. Funding Co.
Mortgage Broker since 1990, NMLS # 60631
Yes, on large mortgage loans it is relatively common for a bank to require 2 appraisals.
Digs Realty Group
Fannie Mae and Freddie loans with 3% down are for loan amounts below $625,500, it may even be $417,000. If you're buying a $1.2M apt, , there's no 3% down.
I was making the assumption that '7k' rent was 7k per year, not per month (i.e., paying about 580/month, which seems low, but not unheard of [roommates, miniscule studio, etc.). You probably could keep monthly costs on a purchase to around 7k/mo, but why not move to a cheaper place, continue to rent for a bit, and build up some assets first?
Not to criticize but if you have only 150k in assets it doesn't sound very prudent to rent a 7k apartment in the first place.. I'd say a 1.2mm 1br condo would be similar to a 4k-rent 1br in terms of quality. So why not just rent the 4k 1-br for now and save 3k a month in rent? That's 36k a year, and almost a quarter of your assets
Thank you Aaron for your insight!
It all depends on whether you think the investment in real estate less your expenses is going to outperform other asset classes where you could put your money. You're only 'throwing away' rent if you have the option to live somewhere with no expense -- it isn't practical to be 'short' physical housing. If you think that NYC real estate (and specifically the condo you buy) will outperform other investments, then it's a viable investment vehicle. (for a definition of 'outperform' that takes into account your personal tax rates, the marginal increase in costs over a baseline rent, renovation investments, ongoing maintenance expenses, utility value received from living in your investment, and an estimated holding period for the investment).
Without knowing anything other than what you said, if you only have 150k in assets (total, not just what you could put down), it's not clear that your first priority should be in something as illiquid as real estate.
congrats on your move
Sonny joined SE a month after you ... 7 years ago ... referred 1 client?
Just a note for those of you who are newer StreetEasy users: Sunny was one of the first posters on this chat board, and consistently gave such helpful & informed mortgage advice that I referred a client to him. That client was a happy camper, praising Sunny's attention to detail (and, of course, rates). If you're in the market for a mortgage product, put him on your list.
deanc - glad to share why I moved and where rates have been. Please feel free to email me. email@example.com
Wrong, crash will be Oct of 2024. Good news though, by 2026, massive fed/central bank intervention (yes , even bigger then now) to stave off global collapse will drive 30 year fixed rate to 1%. Money will be handed out freely on every street corner
... along with my credit rating. The rep waived/reduced some of the fees and gave me a lower rate than the others. I locked into that deal right away.
What I meant by calling the lenders a few times is that sometimes you get different answers. I called one bank 3 times on another mortgage. The 3rd time, the customer rep started delving into the accounts I had with them, both then and in the past
Don't forget to check on the banks that have been giving mortgages in the selected building. That can help expedite the process. If you're already a customer of one of those banks, they sometimes give you a better deal. Also call the lenders a few times.
My current mortgage is with Wells Fargo since my employer claimed he had a special deal set up with them. I did get a good deal but the branch I had to go to outside NYC that was not efficient. There was no reason for the delays based upon my financials/credit rating and the fact that I was putting 65% down. I should have gone to a NYC branch.
I wouldn't. They take forever to close the loan since there is never any urgency for them. Go to a smaller broker who will hustle on your behalf. Try Reliant Home funding, like Greg Parmiter---631-446-3108.
Try Greg Parmiter at 631-446-3108. He did the loan on my house from start to finish in about 3 weeks and was such a smart, attentive guy. Highly recommended.
You can work with more than one mortgage as well as approach banks individually. The mortgage brokers are paid by the bank. If you work with more than one, you may end up paying for more than one appraisal.
E.S. Funding Co.
Mortgage Broker. since 1990
NMLS # 60631
Licensed Real Estate Broker since 1987
No upfront fees, lender pays me, great niche products
Stu kolinsky. Stukolinsky@gmail.com
I'm pretty sure 5/1s are still available, but maybe not for all types of properties/products? Do you mean the gov't is taxing the banks issuing the loans? It seems to me recent years would be by far the safest for a 5/1 loan in terms of consumer protection.
As far as I know... there is no such thing as 5/1 ARMS, I was told the gov't stopped this product by heavily taxing it, thus making it not feasible.
With that said, I recently got a 7/1 ARM with a 2.875 rate via HSBC
Cash out would require a minimum LTV. Therefore depending on FICO score and LTV, somewhere in the neighborhood of 3.75%. But rates can change quickly .
E. S. Funding Co.
Mortgage Broker. since 1990
RealEstate Broker since 1987
4% does sound high. Try Sunny Hong at DE Capital or Astoria Bank (formerly Astoria Federal)
@Feelhong, we are with Wells Fargo :) though the 4% was last year (I'd need to look it up and say August). I'm thinking if @muromec ever comes back to this post and details the name of his broker that is offering 3.65% that I'm in the market to refinance our $900k (possibly even cash out $50k for renovations) so hopefully he/she comes back.
So in 2008 we did this in Brooklyn heights, if you look here or brownstoner you'll find some of my previous posts however the short version is this.......
In 2008 we banked with Chase but they wouldn't allow combination financing..... so to purchase and combine 2 units we took out a mortgage with Citi providing funding for both purchasing both (80%) and we paid cash to do the combination renovations, there was also a "escrow" and a time limit to complete the combination I don't remember how long but I think a year.
In 2012 we combined another apartment (downstairs rear).....the irony was this time Citi wasn't doing combination loans but Chase was.......so we moved our banking back to them........ (though have since refinanced with Wells Fargo).
As far as the coop was concerned the 2008 renovation no probs, the 2012 combination....some were against it but approved in the end.
Do it is my advice as its a great way to generate capital value.
AVM - thanks! The value of existing renovations would remain intact. Would basically just re-work floorplan of 2nd unit.
1. Some banks (e.g., Chase) will come in and do an appraisal of both units as if they are combined. The new loan will be secured by the shares of both units. It will fund at the closing of your purchase of the 2nd unit, and a portion of the proceeds will pay off your existing mortgage. Also the bank will holdback some of the cash proceeds into escrow. The escrowed amount should be fairly modest -- minimum $10k but probably not much more. Months later, whenever the 2 units are legally combined, the escrowed monies will be released and paid to you. This is how it worked a few years ago anyway...of course things may have changed.
2. I would not expect additional leniency from the coop. You should look to the total maintenance for both units P&I on the new larger mortgage, and use this total in the income ratio.
3. In addition to what Alan said...
On the first unit, will the value of the renovations you're already made remain intact? Or are you essentially starting from scratch on both, and hence relinquishing the value of the $200k that you already put in? That's not necessarily a deal breaker, but it does make it tougher for the numbers to work if you're starting over again as a gut reno. Another consideration: can you buy any of the building's hallway space to enlarge the entryway or improve the flow? Often when apartments are combined, hallway space becomes available.
Hi Alanhart, thanks for the follow up. Here's a few more details:
1) UES, 70s and 3rd - I believe there's a market. Combined, it'd be a 5 br/4 ba (flex to 6 br, but would make an office) with large kitchen/dining room/living room.
2) Floorplan is not awkward, actually quite useful even with the 2 entrance options.
3) Maintenance would be ~$6800
1. Does your local market support $4 million 4 BR apartments?
2. Will the resultant floorplan be a gracious and lovable home, or an awkward collection of compromises and bad flow?
3. Will the combined maintenance make it difficult to sell, versus a purpose-built large apartment?
4. These4. These are considerations that the board, and maybe even the bank/appraiser, will ponder. Not just you.
A belated thank you to all who answered.
Everyone above is correct based on my experience. If you take the deduction, it will result in an IRS inquiry because your name doesn't match the 1098 issued by the bank at year's end listing the mortgage interest. My own experience with this resulted from my then boyfriend and I taking out a mortage together. The mortgage listed us both as mortgagors, but the 1098 form only had room for one of our names so his name appeared. Each year we we split the deduction according to the percentage of the mortgage we each paid, the IRS sent me a letter demanding I pay a penalty and back taxes or that I submit proof of eligibility for the deduction (meaning a copy of the loan agreement). Each year my accountant would take care of providing the proof and the matter would be resolved. But it was annoying. When we refinanced we made sure the bank would list us both on the 1098 and it hasn't been a problem since then. Lesson: the IRS pays close attention to this stuff.
No. As described, you are neither the shareholder or the mortgage holder. You are only a tenant, with no ability to deduct or offset interest or taxes.
No, because the 1098 (that shows mortgage interest paid) will be issued by the bank in your mother's name and social security number. Get her to take the deductions.
I wouldn't think so. The whole point of a mortgage deduction is to offset income.
Is financing available for this building when there's a pending lawsuit from the board against the sponsor? Seems like there's an issue with roof leaks and structural defects at the building. At an $8mm lawsuit, that's a pretty sizeable amount for a building with so few units (15 i think?) should the board lose and need to pay for all the structural defects on its own.
They also mention a private roof but apparently the roof hasn't been partitioned yet for each apt and there's more leak issues up there? Does anyone have insight into this building's financials or know anything about what the $1700/month assessment for 6 months is for? A 10k asssessment sounds quite sizeable to me.
GuardHill Financial Corp. is a mortgage banker and brokerage company, catering to the specific needs ofmany different types of borrowers. We provide our clients with the most competitive mortgage programs inthe market with rates equal to or less than rates they would otherwise obtain independently.
GuardHill Financial Corp. is second to none in the foreign borrower lending market. We have fantasticprograms to help foreign nationals purchase or refinance homes here in the United States.
Here are some highlights:
• Fixed and adjustable rate mortgage loans for co-op’s, condo’s, and single family
• Up to 60% financing
• Can close in LLC, Trust, Sub S Corp or Corporation as long as it’s a US entity
• Must supply two years and year to date income from their country
• Clients must show International credit if you can get it, if not 4 vendor reference letters with a good 12 month pay history and in good standing.
• Must show assets in an internationally recognized financial institution
Sohoman - Just confirming Adam statement above.
One of my colleagues notified me to the recent activity on this thread. To confirm I am not Brookman. I do post semi-regularly on brownstoner.com if anyone cares to check on the validity of my statement. I have been quoted in the NY Times and I can be found on the internet via google search. I don't post that often on SE but have in the past on a few occasions.
Mortgage Master acted as a direct lender on his transaction. We sold the loan to one of our investors (institutional banks) post closing. I was not a broker on the loan.
The program guidelines allowed for 60% LTV, I had gotten an exception on his loan for 61.31 LTV due to an appraisal coming in slightly lower than expected. The property was a condo owned free and clear in Dumbo. This was an all cash out without a required relationship. 420k loan amount. No credit score reported on the US credit report. 5/1 ARM and the rate at the time of closing was 5.25%
Mortgage Master Inc
adahill AT mortgagemaster.com
>Are there any programs available for illegal aliens?
Probably, just need to show their Municipal ID card.
Does any one has use their services ? They are both mortgage banker & mortgage broker.
Here is the scenario.. Buying a townhouse in hamilton height area - Towhnhouse cost 1.6 mn.
Myself and partner put down 10% for downpayment and agreement. Lender agreed to finance and backed out in the last minute.
Here is the details of the property.
Property address : Hamilton Heights , Mixed Use
Price . 1.6 Million
Total Sqft - 5100 Sqft, ( Commercial 2000 sqft 3100 Residential)
Current Cash Flow - Vacant property.
Projected Cash Flow - Fully rented - 192,000 annual, 16000 $/ Month
We both have excellent credit and willing to put 40% for downpayment.
One of the partner owns around 6 restaurants and willing to open another one in the commercial space below.
can any one of you guys willing to provide financing. we will put 40% around 600k or if needed more towards the purchase price..
Please provide your details below and I will reach out..
Have an even smaller building without massive reserves and our underlying mortgage is through NCB.
Looking at refinancing and they're offering about 200 bps over the 10Y Treasury on a 10Y balloon. Just starting the process so not sure exactly how terrible that rate is.
I purchased a prewar coop apartment with 22 units in NYC in cash, and the building has some spotty financials (low monthly maintenance combined with an unexpected boiler breakdown depleted the reserves a couple of years ago). The financials are on the mend, but I'd love to take out a mortgage sooner rather than later to lock in rates and begin doing some renovations. Does anyone have a recommendation on NYC lenders that have a more holistic approach?
Appreciate any insight or advice from those who have been through this sort of situation.
Anyone have experience using First republic for home mortgage?
As a mortgage broker I had a relationship with Wells Fargo until they terminated their relationship with all mortgage brokers.
That said that just because a building is not on. Wells' s approved list does not mean it's not a Fannie Mae approved building. They may not have researched the building due to the fact that they did not do any loans in the building therefor didn't research it. In this case they do a spot approval, and if this works, they will consider the loan. That said under no circumstances would Wells consider financing in a building. Not Fannie Mae approved with no waiver.
E.S. Funding Co.
Licensed Mortgage Broker since 1990
Licensed Real Estate Broker since 1987
Seems like 1) you should be excited that they are willing to lend to non-approved building and 2) you should make sure you know why it's non-approved and that you're comfortable taking that risk. (A lot of people rely to some degree on the bank's stamp of approval to confirm that diligence isn't too bad - and here you don't have that). I wouldn't stress over "marginal difference" in pricing within WF. To make sure it's competitive thought, can't hurt to get a second opinion on pricing from another bank.
Certain buildings are on a bank's "approved list"; the banks consider this building financially safe. The building has enough reserves; a large percentage of the units are NOT owner occupied; the sponsor does NOT own too high a percentage of the units, etc.
But a building that's NOT on the bank's "approved list": banks are reluctant to offer mortgages to an applicant who's buying into a "non-approved" building, generally speaking.
Nonetheless, a bank will loan to an applicant with very good financials, even though he/she is buying into a "non-approved" building.
My question: If one buys into a "non-approved" building, will the mortgage rate be HIGHER than the rate if one buys into an "approved" building? If so, what's the difference in the rate, generally speaking?
My banker from WF just told me that there is no difference, and I'm happy. But I've heard that there could be a marginal difference. So I'm confused.
Should start over with a new lender?
I was in contract for a studio, and decided to back out when a studio in the building I REALLY wanted came up a week later (cost me a lot of money to back out, but the 100k saving was worth it). The bank had given me a conditional approval based on the other place, and said it would be no problem switching as the new place was cheaper, and most of the work was done. Now, I get a stack of papers in the mail asking me to apply over, none of all the previously gathered info filled in, and the rate shown is .25% higher than anyone else right now. The thing is, I can never get the loan officer or his assistant to respond to the most basic question and tell me what rates are - and tell me if, in signing this, I'm stuck at that rate, and if appraisal has been done, if we are in fact starting over etc. Basically, what the state of play is.
If it really is a case of starting over, I'm thinking of switching to a mortgage broker who's been chasing me because they would appear to have a vested interest in following through.
I also have BoA contacting me but I'm reading how problematic they are (or is that par for the course with any big bank?)
By the way, I chose the bank because of free recasting. The broker said with her company - which functions as a mortgage bank, by which they would eventually sell my loan to Fannie Mae - recasting is not guaranteed.
Appreciate advice here! Closing is mid July.
Also can you get anyone to lock you on a weekend?
use my broker the best got him from Angies list. I started out with Citi. they were the worst. in 1 week got a commitment closed in 35 days Discount Home Mortgage is the best 718-528-0645 ask for steve michaels honest broker
I am a Mortgage Banker with The Federal Savings Bank. We are a federally chartered bank that has relationships with investors (all the banks you are applying to & some that you're not) The benefit of working with me is if we cant fund your loan, chances are no one will. Additionally, I can provide a commitment letter during the pre-approval stage that an underwriter has review income & assets. Please let me know what I can do to help.
James Giacalone, Mortgage Banker
The Federal Savings Bank | 120 Broadway, 29th Floor, Suite #2950 | New York, NY 10271 | USA
direct: (646) 568-3644
A mortgage broker can submit your application to several banks at no charge.
E.S. Funding Co.
well good luck- I'm a nyc arch- also do work -design in westchester/ct custom homes- if you are in need of an architect/designer/project manager- let me know i love to design and can work with all all budgets - i see projects from concept to move in/..i have a lot of very good general contractors connections as well.
best email me at firstname.lastname@example.org anytime
> I bought a 1.7 mill condo with a 500k downpayment. I am now leaving the country, and recently sold my apartment for 2.4 mill.
Did you have to pay any capital gains tax?
Congrats Andy! From what I have learned (luckily not personally, at least not yet) there is no job security anywhere. It may actually be better to be a freelancer skillful/valuable enough where a number of companies are willing to pay you $1M to consult for them (and still be able to get jobs in 2008/2009 to make $200-500K) vs. having a "stable" job with one firm paying a $500K salary, and being let go at the exact same time hundreds of other similar formerly "stable" positions get cut. Frankly, all of us take a gamble when we buy without having a very sizeable cash cushion, because no one’s income is safe and can be gone in a heartbeat. Even with some savings, counting on one’s job to pay mortgage is still a gamble..
Or lose your job.
Big deal. So you gambled and won. I guess this means we should all go to Atlantic City!
At our closing, each bank asked for verification of the latest financials before they approved the closing date. My bank took 5 business days and buyer's took 8.
NYCee, can you share how long you had to wait for the HDC approval? We are just starting the board application now, and it is also in an HDC building @145th street. Thank you for your input.
Depends on the bank- SHould be within a week of receipt of the last condition- aka title.
Senior Loan Officer
Atlantic Home Capital
4175 Veterans Memorial Hwy
Ronkonkoma, NY 11779
Office: 631-687-3510 x106
Direct Fax: 631-918-5222
You can catch me in the directory at www.Brownstoner.com & www.montauk-online.com
I have had my loan commitment for a couple of months, including an extension that expires later this month.
I've just (finally) gotten approval to go ahead with the sale by the city (HDC property) and the underwriter has just about everything, except the title search which wasn't ordered until the approval Friday.
I'm trying to get an idea of how long it would take to schedule the closing now. I did try and contact my mortgage processor, who was out yesterday and will probably not get back to me before Monday. But I'm kind of antsy to get some idea right now.
Research says closings can happen in as soon as 30 days, but those also consider the entire process, not this end bit.
TIA for any info.
Agreed that USAA and Amica are good companies -- for the middle market. Their are many "good" companies out there, which is not usually the issue. Furthermore, for NYC condo/coop owners, you may find the middle market not sufficient for the unusually high valuation of NYC condo/coop valuations.
Unfortunately, many people make an insurance purchase based on incomplete information and do not completely understand the product they have purchased. This is inherent in the complexity of the industry & products -- and the fact that you only "really" know if you bought the "right" product after you have a large claim.
Some good advice is to work with a trustworthy & experienced broker who can explain the differences in coverages and who can shop around for you. Your condo/coop/home is perhaps your largest asset and your insurance placement should be commensurate with your risk appetite. Also, a good broker has a fiduciary duty to represent you, unlike the agent who takes the call when you buy insurance yourself.
Kindly get in touch for a no obligation consultation.
I bought Amica home insurance, after it was recommended several times by Consumer Reports over the years. It's top rated in the May 2014 issue. (based on reader survey/satisfaction). I've never had to use it, though.
CR also top rates USAA (but i think you have to have a military connection) and in 2009 Chubb was right up there, too, but isn't mentioned in the 2014 survey.
Folks -- I can help. I fully endorse what Tallisman says above. Condo/Coop Insurance is inherently complicated for many reasons. Condos/Coops in New York City are even trickier. Many good carriers have left the market after Sandy and won't write business anymore.
By way of introduction, I am an independent broker and president of my firm Prana Risk. I can help explain to you the differences between the standard/middle market and the more higher end products. I also work with AIG, Fireman's Fund, Chartis, and Chubb and they are all great higher end products.
I also have access to many middle market products. That being said, there are some large gaps with middle market products that are especially relevant in higher valuation apartments in locations like NYC.
Here is an example of one gap:
Most condo/coop policies are written on a named perils basis for dwelling (i.e. studs in coverage). What that means is that the peril has to be one of 17 or so covered perils in order for the claim to be paid. In the even of a claim, the burden of proof is on you, the insured, to show it is one of the covered perils. Now, to contrast, in a standard Homeowners policy, the dwelling is covered under what is called a "special form" -- which means everything is covered unless it is specifically excluded. This difference is HUGE and shifts the burden of proof on the insurance company.
The only way to get this "special form" coverage on the dwelling portion of your condo is to go with one of the higher end products. The products that are advertised on TV will not cut it. Nor will most brokers (sad to say, but true).
Now, most condo owners would view their asset equivalent to a Home in terms of worth, value, etc. Like a home, your condo/coop is likely your most valued possession. Why then insure it any less than if it were your home?
At the end of the day, I can walk you through a myriad of choices and explain the pros/cons of the product you are purchasing. More often than not, an insurance purchase is often rushed and poorly understood which can lead to unsatisfactory outcomes. My primary goal is to get you to fully understand the product you are purchasing, and to ensure you are comfortable with that product. I also try and assess your own personal risk tolerance. Sometimes I find that people are ok with the standard product -- and I am very pleased to offer it when they understand what they are purchasing. And the same goes true for a higher end product. It's just a matter of choice. But unlike a car purchase -- there is no test driving allowed here (and we hope there will never be one!).
Kindly get in touch for a no obligation consultation.
Tallisman: You still around? Would love to get your email add since I'm looking for a new broker
Mortgage Broker here that does commercial loans.
E. S. Funding Co.
Try a mortgage broker.
I'm interested in finding more info on commercial loan rates (to acquire a small multi-family building) at varying LTV, along with a realistic estimate of closing costs. Any advice? Thanks.