buying a condo in Somers, NY (insurance, condos, 2nd mortgage)

[john2004]

We got an accepted offer on a condo in Somers, NY. We wanted to do FHA but then it seemed like with the restriction of right of first refusal we cant get FHA.Now with the conventional and 10% down, nobody is able to tell us if the mortgage insurance companies will approve us. Now we are left with an accepted offer and the contract on its way and still no bank that is able to help us. We already tried HSBC(because of their low rates), wells fargo, and US bank. Can anyone help us with this problem?

[Jdawg8181]

Originally Posted by john2004

We got an accepted offer on a condo in Somers, NY. We wanted to do FHA but then it seemed like with the restriction of right of first refusal we cant get FHA.Now with the conventional and 10% down, nobody is able to tell us if the mortgage insurance companies will approve us. Now we are left with an accepted offer and the contract on its way and still no bank that is able to help us. We already tried HSBC(because of their low rates), wells fargo, and US bank. Can anyone help us with this problem?

Most banks require a 20% down payment. Otherwise you either have to take out a 2nd mortgage or pay PMI. Maybe that's why you can't get approved.

[cali_to_nj]

what is the right of first refusal on an FHA loan? Our B of A finance guy is telling us to go the FHA route until we can refinance (since my husband just started a new job history), and I know there is an additional upfront charge and you have to pay insurance & taxes into a fund every month but we have not heard anything about a right for first refusal?

[john2004]

the right of first refusal means that if you want to sell your condo, the complex itself has the right to buy the unit if they feel the way you priced your condo is not right( too low). thats why we cant get FHA.
Also, we have to pay PMI, but the Mortgage insurance companies require 20% and we only have 10%.
Any more ideas. please help

[cali_to_nj]

okay thanks for the clarification that the right of first refusal applies to condos. On the PMI though, this doesn't really make sense because if you were putting down 20% you wouldn't even need PMI. We are going through BofA and approved to put down 10% on a single family home without any additional approvals on the PMI...