Rental Property Investor · La Quinta, CA · Member since 2014 · 1k+ posts · 779 votes
Hi All-
I'm looking at purchasing a condo in a 6-unit building in Baltimore city. Most of the units are not owner-occupied, so my usual lender said he cannot lend on this condo. Is this normal? Can anyone recommend a lender that will work with this situation?
Any thoughts from anyone familiar with the Baltimore City area, or that is more familiar with lending on condos in non-owner occupied buildings? Not my normal market or property type.
Yes its normal no lender wants to risk their capital on a condo project full of tenants that dont take care of the project. The typical requirement is 50% or more owner occupants but some banks over extra over lays requiring 60, 70, and even 75% owner occupants sometimes.
This is why a lot of investors dont like condo's. There are pro's and con's to condo's as long as you mitigate your down side, utilize your upside, and it fits in your investing strategy then condos could be awesome.
Rental Property Investor · La Quinta, CA · Member since 2014 · 1k+ posts · 779 votes
12y
Any thoughts from anyone familiar with the Baltimore City area, or that is more familiar with lending on condos in non-owner occupied buildings? Not my normal market or property type.
Any thoughts from anyone familiar with the Baltimore City area, or that is more familiar with lending on condos in non-owner occupied buildings? Not my normal market or property type.
Yes its normal no lender wants to risk their capital on a condo project full of tenants that dont take care of the project. The typical requirement is 50% or more owner occupants but some banks over extra over lays requiring 60, 70, and even 75% owner occupants sometimes.
This is why a lot of investors dont like condo's. There are pro's and con's to condo's as long as you mitigate your down side, utilize your upside, and it fits in your investing strategy then condos could be awesome.
Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
12y
John,
As Albert said, it's normal. It's called non-warrantable condos. There are a few lenders that will lend on non-warrantable condos. Google is your friend.
I can get loans on non-warrantable condos all day long. However, my portfolio lender only lends in 3 counties where I live.
Lender · Bellevue WA & Orange County, CA · Member since 2013 · 2k+ posts · 1k+ votes
12y
Originally posted by @Account Closed:
John,
As Albert said, it's normal. It's called non-warrantable condos. There are a few lenders that will lend on non-warrantable condos. Google is your friend.
I can get loans on non-warrantable condos all day long. However, my portfolio lender only lends in 3 counties where I live.
Best of luck.
Right Minh, Bank of Internet, union bank, and others will do non warrantable condos all day, some have #financed properties they will limit their exposure to, and other requirements as well.
B of I has a min 300k loan amount so only condos in really nice areas =D.
Many local portfolio lenders will entertain non warrantable condo's as well if you have 20-35% down usually.