Help please, ideas needed for condo purchase.
Good evening all,
I would appreciate any advice people could help us with, thanks in advance.
Backstory...
We are set to close on a condo that will serve as a second home, then housing for daughter for college, then eventually an investment property. All the financials look great and we have it under contract. We were preapproved and have the cash for down payment. We are using a mortgage broker and during the final stages the Fannie Mae review has stopped the process dead. Fannie Mae requires that no more than 50% of the complex can be listed as rentals and now it looks like the mortgage won't fund. Typically people purchase these with cash, but we don't have that. We are still waiting for final word but it's not looking good. We don't want to loose this awesome opportunity. Please offer any advice other than potential hard money lending. Thanks
This has always an issue. It used to be 35% max. I suggest you cancel and ask for the deposit back. You need to be careful on next purchase. Some place has lots of mini-condos and the ratio is lower than spacious units.
Good luck
Thanks Sam, we were hoping to find alternative methods or ideas of funding prior to that as a last resort.
So I was able to get in touch with an out of state real estate investor and share my story. He recommended to look for a portfolio lender. Does anyone from Arizona have a portfolio lender that they can recommend? Thanks
can you share the name of the complex. I ran across this situation and my broker was able to do the deal by looking at the assessor's data vs the survey provided by the HOA.
What you're referring to is a non warrantable condominium.
There are multiple lenders out there that will do non warrantable condos, but you need to make sure that they will do the non warrantable because of the occupancy ratios. Some condos are non warrantable because there is active litigation, etc. so just make sure you ask up front if they do non warrantable condominiums because of occupancy. Also, some portfolio lenders will have issues with non warrantable condominiums so just be aware of that.