San Francisco, CA · Member since 2017 · 5 posts · 1 vote
I'm new to the forum, and wanted to say I've found it to be a great resource!
Quick question on an issue I'm facing: I own a 2-unit building in San Francisco, that we "condo-converted" into 2 condos in 2013. We continue to own both condos, and have rented them out - so this is a 100% tenant-occupied, 100% of units owned by one entity - hence non-warrantable building.
When we first bought the property, we financed it as a 2-unit building, and the note holder had allowed the condo conversion to go through, adding a "condo-rider" to the existing note, which now encumbers both the condo parcels.
I'm looking to refinance this loan to a fixed rate (it is an ARM that I should've refinanced to a fixed, but didn't) - would anyone know what my options are ? From reading the forums so far, I've gathered that I ought to be looking at portfolio lenders or local banks. Would anyone have any pointers to such sources in the San Francisco area ? Or any advice on how to approach this ?
Our credit (800+), debt-to-income (<37%) and loan to value (~60%) are all excellent.
Rental Property Investor · San Francisco, CA · Member since 2013 · 1k+ posts · 1k+ votes
9y
it's sort of good news, bad news. Good- yes a portfolio lender will be glad to lend on this. Bad- they most likely won't do a 30 yr fixed. 5 or 7 year, amortized over 30, is likely though. First Republic, Sterling bank, bank of Marin, etc.
The Brass ring: I suggest you try Wells Fargo, as they have made exceptions for small SF condo projects in the past. Not sure if they will do BOTH units as rentals though, but you could ask. Try justin Brilman at WF (can't put tel# here, look him up, I believe he's at 201 mission st). Personally I thought he was a bit of a prick, but he did (eventually) get me some killer 30 yr fixed rate loans on similar condo projects. It took months...and months...and months...but eventually we closed and I was content. Thank god I'm not planning to refi these again though!
Please write back here on your progress. I'd be curious what WF can do for you. Good luck!
San Francisco, CA · Member since 2017 · 5 posts · 1 vote
9y
Thank you for the pointer, @Amit M. It was definitely helpful. Though I hadn't seen your comment until after, I did speak to WF (another agent, who I was put in touch with via someone from Banc Home Loans), and they do indeed do non-warrantable condos of this sort via their portfolio lending. I didn't end up going with them though.
There was one other lender (Star One Credit Union) I managed to find, who beat the socks off the rate WF was offering me. I ended up going with Star One for a fantastic rate, and just signed docs on Wednesday, likely funding and recording early next week.. The process with Star One was also fantastic - fully transparent and it's truly a joy when you have an underwriter you're emailing back and forth with on specific questions and clarifications :)
Anyway, just thought I should come back and report on the progress on this, so anyone in the future looking for a refinance on fully rented out, fully owned, 2 condos which resulted from a 2-unit TIC condo-converted to 2 condos in San Francisco - they know that they do have options :)
Now, onto my next project.. Cash out refi on my primary home duplex.
Rental Property Investor · Medford, MA · Member since 2016 · 288 posts · 171 votes
8y
Hi @Naveen Koorakula thank you so much for posting this you just made my week. I’m currently looking to buy a non warranted condo am still in search of finding a solid lender. Do you know if Star One would do any deals out of state? THANKS!