It’s the question that’s on the mind of every first time home buyer – how much of a down payment do you actually need to buy a home in NYC? 

The common recommendation is 20% down. And for good reason. It can be quite tricky to purchase in a competitive market like NYC with less than 20%. I enumerate the reasons why in this post. 

But recommendations aren’t the same thing as requirements. And different property types have different thresholds. 

Plus, not all neighborhoods in NYC are equal when it comes to their level of competitiveness and available inventory. Some neighborhoods have a higher number of single family homes and FHA eligible condos while other neighborhoods are mostly awash in coops. So this can make a big difference in your ability to do less than 20% down. 

So without further ado, let’s break down what you can typically expect when it comes to down payment requirements in NYC. 

Co-Ops

Typical Down Payment Range – 20 to 25%

The most common down payment range for New York City co-ops is 20 to 25%. Meaning, this down payment amount will open the door to the widest selection of building options. 

Sometimes – especially in the outer boroughs – you can find co-ops which will permit 10 to 15% down. But you can also run into co-ops which require 30% or more (Fifth and Park Avenue in Manhattan, I’m looking at you). So don’t make assumptions. Always check the listing for the details on what’s required. 

Condos

Typical Down Payment Range – 10% to 20%

The vast majority of condos throughout the city will permit 90% financing which equates to needing 10% down. But there are also FHA eligible condos where you can do a 3.5% down payment. However, these are far less common in NYC than they are in other cities. If you’re hanging your hat on this, then you’ll have more limited options. 

On the flip side, there are also condos out there (especially in Manhattan) which require a 20% down payment. So don’t assume that just because it’s a condo, you’re good with a 10% down payment. Again – always verify! 

Single Family Homes

Typical Down Payment Range – 10% to 20%

Single family homes don’t have down payment “requirements” in the same way that coops and condos do. Instead, how much of a down payment you need will depend on what a lender is willing to give to you and what a seller is willing to accept. 

Single family homes are where you have the best chances of using an FHA loan with 3.5% down. But again, please refer back to my post about the potential drawbacks of depending on loans like this in NYC. The more competitive the area, the slimmer the chances! 

Multifamily Homes

Typical Down Payment Range – 20 to 25% or more

For a two family home, you can find many lenders who are willing to do a deal with a 20% down payment. But once you get to 3 or 4 units, they may want to see a higher down payment. 

The reason? If you have a building with multiple units, then it’s highly likely that you’ll be dependent upon rental income from those units to keep current with your mortgage. So those additional units represent additional risk to the lender. As a trade off, they’ll want to see you take on some of that risk with a higher down payment. 

In some instances, you could be looking at 30% or more as a requirement. So if you’re hoping to engage in house hacking using a multifamily, it could prove a bit difficult (along with the fact that cap rates are notoriously lower in NYC than other cities). 

Down Payment Assistance

If purchasing a home is an important personal goal for you, but you’re having difficulty coming up with a down payment, there are things that can help. 

You can try to see if there’s someone in your life (a friend or family member) who could team up with you in different ways to make a purchase. 

You can check out some of these tips from me to help you save up for a down payment faster. 

And you can look into down payment assistance programs, like the HomeFirst program, which recently got an infusion of $41 million to give out up to $100,000 to qualifying participants. 

If you’re looking for more information to help you make your dream of home ownership a reality, then I recommend checking out my First Time Buyer Bootcamp.