Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I am looking to make my first purchase of a single family, 1 bedroom condo. I've researched the numbers and feel confident.
However, I've been having difficult finding a mortgage company. Apparently, less than 50% of the development is owner occupied, so no one will write mortgages there.
Is there any way around this or does anyone have a suggestion?
I am looking to make my first purchase of a single family, 1 bedroom condo. I've researched the numbers and feel confident.
However, I've been having difficult finding a mortgage company. Apparently, less than 50% of the development is owner occupied, so no one will write mortgages there.
Is there any way around this or does anyone have a suggestion?
Thanks.
Isn't single family and condo an oxymoron?
Sorry don't mean to knit pick. Are you doing FHA or VA? I woudl think with a conventional loan that wouldn't be as big an issue.
No, it was a conventional loan that they would not give. Two different mortgage guys said they could not write a mortgage in a complex where more than half the properties were owned by investors. I had never heard of this.
You need to find a local bank that will portfolio the loan, meaning they actually hold it and not sell it on the secondary mortgage market.
So...head off to the local banks and find out who holds their loans.
Right, if the conventional loan is to be backed by Fannie Mae for example, then you run into strict requirements such as the number of owners vs renters. They want to protect their investment, and a high number of renters adds more risk. A local bank that holds their own loans may be willing to take more risk.
Here's a link to Fannie Mae that talks about their requirements and has lists of approved condos by state:
Right, if the conventional loan is to be backed by Fannie Mae for example, then you run into strict requirements such as the number of owners vs renters. They want to protect their investment, and a high number of renters adds more risk. A local bank that holds their own loans may be willing to take more risk.
Here's a link to Fannie Mae that talks about their requirements and has lists of approved condos by state:
Wow, good link. So I guess they weren't BS'ing me.
I will get back to the drawing board with some local banks.
Thanks very much.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.