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As a foreign buyer how much down payment for purchasing a one bedroom condo in Manhattan?

By
Real Estate Agent with Douglas Elliman Real Estate

As a foreign buyer how much down payment for purchasing a one bedroom condo in Manhattan?

There is no one defining answer to this question, yet through our successful experience with helping foreign United States buyer's with their purchase of a Manhattan condo we have a certain idea of what is expected.

As a foreigner purchasing a condominium in Manhattan obtaining a mortgage through a US bank will require a certain commitment both in providing the bank financial documents they require along with the down payment requirement to purchase the apartment.

On many websites with properties, you may see depending on your research that most condominium buildings only require a 10% down payment.  This may be true for the building's criteria, but it will be much more than 10% when it comes to the bank's criteria.  It is the banks criteria when they are providing the mortgage that ultimately matters.  The amount of down payment depends on a number of factors:

  • Loan Amount
  • Type of Loan
  • Borrower's Financial Profile
  • The building you are interested in

Until you have started the loan process, the bank will not be able to quote you their estimation for the down payment, but expect the down payment to be no less than 30% of the total amount of the purchase.  

If you are a foreigner looking to purchase a one bedroom condo in Manhattan the down payment will be around 30% in our past experiences, but could very easily reach 50% depending on the factors I listed above.


Take for example a 1 Million USD purchase, not factoring in closing costs and the other bank requirements you would have to put down payment of at least $300,000 USD.

Again, this is just an example of 
how much foreign buyer need to prepare for down payment for purchasing a one bedroom condo in Manhattan.  The first step to take is to contact us and ask us so we can have a conversation about what are your criteria in home search and we can give you a better idea of availability and the purchase process. 

Call us at (917)837-8869 or email us at (Morgan.Evans@elliman.com) in detail or what you are looking to purchase.

Posted by

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Morgan Evans is a Licensed Real Estate salesperson in Manhattan New York specialize in neighborhoods such as: Greenwich Village, Soho, Union Square, Upper East Side, Upper West Side, Chelsea, Midtown West, Midtown East, Nolita, Lower East side, Financial District in Manhattan. Morgan specialize in working with international buyer, high net worth buyers,  parents buying for children and investors buyers. Contact him today by calling (917)837-8869.

https://www.eileenandmorgan.com/
Dorchester Towers Condo

 

Comments(11)

Eve Alexander
Buyers Broker of Florida - Tampa, FL
Exclusively Representing ONLY Tampa Home Buyers

Interesting...

in Orlando, no one wants to finance condo's so foreign nationals just pay cash. 

Eve

Apr 23, 2012 08:12 AM
Morgan Evans
Douglas Elliman Real Estate - Manhattan, NY
LICENSED REAL ESTATE SALESPERSON

Eve, that make sense. Majority over 90% of our foreign national buyers pay all cash on their purchases as well. For those who can not afford cash, there are some options but must fit into banks' qualifications.

Apr 23, 2012 08:14 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Morgan, this is interesting, and do not get too many foreign buyers here....so nice to know!

Apr 23, 2012 08:43 AM
Rosalind Nicholas
RE/MAX Condos Plus Corporation, Brokerage - Toronto, ON
Toronto Condo Real Estate Agent, Toronto ON

In Toronto, Canada, foreign buyers of condos, have to come up with a minimum of 35% cash down payment.

Apr 23, 2012 12:08 PM
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

Interesting... I have no clue what the down payment would be for  New Hampshire condo... I do know it can be very difficult to qualify if one is from another country, doesn't have a green card or job... and no us credit lines.

Apr 23, 2012 12:43 PM
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Thank you for the interesting bit of knowledge Morgan, it was a question that I never would have asked but I am glad that you shared it with us.

Apr 23, 2012 04:16 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Morgan - This is good knowledge as we start to see more foreign nationals purchasing, though I find many use cash.

Apr 23, 2012 04:29 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I wonder what will happen to condos when banks stop financing thyem. I had a recent sale where we had to jump through hoops to get FNMA all that they required.

Apr 23, 2012 08:40 PM
Morgan Evans
Douglas Elliman Real Estate - Manhattan, NY
LICENSED REAL ESTATE SALESPERSON

Thank you for all your comments. When we work with Foreign buyers, many inquire about financing in the US, though once they learn all the criteria they have to fulfill, many opt to purchase it all cash.

 

Apr 23, 2012 10:54 PM
Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

Morgan very informative post for foreign buyers and an education for many here too.  Financing a condo is a bit different than buying a single family detached home.   I can see why many foreign buyers opt for cash.

Apr 24, 2012 12:00 AM
Mike Yeo
3:16 team REALTY - Frisco, TX

Great information, Morgan. I love 30% down but 100% down would be the best. :)

Apr 26, 2012 11:02 AM