Unable to BRRRR a condo

[Andrew Miskovich]

Found a good deal on a fixer upper condo $49K -10K in repairs with with ARV of $105K. Thought was to pay cash then refi.....my credit union at first was good but the minimum size loan they would do was $50K (why?) The second issue came the next day...they were happy to help me with an 80% LTV after I fixed the place up; however not on this condo. The issue was Fannie Mae ineligibility for financing....what the heck. I thought America has property rights..... My reading led me to two typical issues that cause ineligibility : own occupied ratio compared to renters and HOA failed to file adequacy documentation. Ok how do I get through this.....any comments Andrew SE Virginia

[Luka Milicevic]

Yep, the owner occupied ratio is a big one. Fannie will not do those loans, therefore a conventional lender will not lend on them because they can't package and sell the loan off. 

You will have to find a portfolio lender. With that being said I don't know that any portfolio lender will lend 50k on a property purchase. It doesn't hurt to try.

I would recommend looking into a line of credit instead, or look for a private investor and expect to pay a higher interest rate.