Investor · Chicago, IL · Member since 2016 · 8 posts · 2 votes
Hey all,
I'm looking for help finding financing for a condo in Chicago that would be non-owner occupied. It's a 6 unit building, with 4 of the units currently being rented out. Can anybody point me to a good place to find financing for such a deal?
@Brian Deery Lots of places do non-warrantable. It typically isn't that hard to find lenders that have non-warrantable options - it is another question to get the loan closed. The investor concentration is a big deal and obviously throwing off the ability to sell the loan to anyone. Therefore they are going to make sure everything else is perfect - reserves look solid, allocating enough on an annual basis, no other major Fannie/Freddie exception like one entity owning more than 10% of the units, etc. For some lenders checking one other negative box on the typical condo questionnaire means it is not going to happen for you. But it all depends.
To save yourself time, make sure you give the 22.1 to the lender up front or see if you can get the answer to as many condo questionnaire questions as possible.
The investor concentration is certainly a problem for Fannie and Freddie, but do you know how many different owners there are in the building? Does one guy own the 4 investor units or are they owned by individuals. Investor concentration is a problem, but so is one person owning more than 10% of the project.