Loans for non-warrantable condo buyers?

5 Replies

I'm trying to find a lender that will offer conventional style loans on a non-warrantable condo, specifically in Florida. I've found a few lenders that will offer a portfolio product with 20% down payment, but only offering 7/1 or 10/1 ARM's. Has anyone else seen anything better? Ideally I was hoping to find something with 5% or 10% down. It seems lending restrictions on these condos haven't eased much since the recession.

We're actually the bulk owner in this case, so we own 75% of the units in the building as it was purchased as a fractured condo deal. We'd like to list the condos for sale, but would like to have a decent lending program in place for buyers

@Steven Darrow Some lenders will offer less restrictive rules against single entity concentration if the untits being sold are lowering the single entity concentration. For example, I am working with a developer in VA who currently owns 100 units of a 155 unit condo project. He intends to sell most of the units over the next couple years. Since this project has an obvious path to warrantabilty we have agreed to offer low down payment 30 year fixed loans which we will hold until the project becomes warrantable. Once warrantable we will deliver to Fannie. Does this sound similar to your scenario?
Yes, this sounds like the exact same scenario as mine. We're looking for lenders who will offer low down payment options and are ok keeping the loans on their books until we are warrantable.

Originally posted by @Eric Veronica :
@Steven Darrow Some lenders will offer less restrictive rules against single entity concentration if the untits being sold are lowering the single entity concentration.

For example, I am working with a developer in VA who currently owns 100 units of a 155 unit condo project. He intends to sell most of the units over the next couple years. Since this project has an obvious path to warrantabilty we have agreed to offer low down payment 30 year fixed loans which we will hold until the project becomes warrantable. Once warrantable we will deliver to Fannie.

Does this sound similar to your scenario?