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Old 08-14-2010, 04:57 PM
 
Location: Houston
287 posts, read 329,220 times
Reputation: 300

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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.
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Old 08-14-2010, 06:20 PM
 
Location: Chciago
721 posts, read 2,655,480 times
Reputation: 497
Quote:
Originally Posted by Buzliteyear View Post
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.
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Old 08-14-2010, 07:50 PM
 
Location: Columbia, SC
9,059 posts, read 18,017,267 times
Reputation: 6674
You'll probably need someone that is going to hold the loan. A local credit union or local lender may have some options the big boys don't.
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Old 08-16-2010, 09:24 AM
 
Location: Houston
287 posts, read 329,220 times
Reputation: 300
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.
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Old 08-16-2010, 12:30 PM
 
Location: Salem, OR
13,985 posts, read 32,777,257 times
Reputation: 12707
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.
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Old 08-16-2010, 01:31 PM
 
Location: Tempe, Arizona
4,511 posts, read 11,886,299 times
Reputation: 2193
Quote:
Originally Posted by Silverfall View Post
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:

https://www.efanniemae.com/sf/refmaterials/approvedprojects/ (broken link)
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Old 08-16-2010, 04:41 PM
 
Location: Houston
287 posts, read 329,220 times
Reputation: 300
Quote:
Originally Posted by rjrcm View Post
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:

https://www.efanniemae.com/sf/refmaterials/approvedprojects/ (broken link)
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.
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