Conventional loan on condo where most units are not owner-occupied

[John D.]

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?

[Albert Bui]

Originally posted by @John D.:

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.