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I am trying to sell my condo and apparently we are at 43% owner occupancy. I understand this poses problems for VA and FHA loans as they want 50/50 mix. I remember when I bought the place in 08 with a conventional loan, there didn't seem to be any such requirements.
Does anyone have information on the predicament that I will be facing? Will I have to sell this as "Cash offers only" or are there still loans out there for buyers?
Owner occupancy is one. Whether a single person or entity owns more than a certain percentage is another one. Typically, Conventional Financing works, unless the HOA Questionnaire reveals this kind of thing, or budgetary issues.
You've got FHA Approval, and then you have Project Approval for FNMA. I can send you an HOA Questionnaire tomorrow and we can see if there might be issues on the Conventional side.
You won't be able to sell FHA with that many investors. No big deal, no one is using FHA unless necessary, so loss of buyers is minimal.
VA has a published condo list. If your unit is on there, you shout be good to go.
It's Fannie/Freddie where the waters are murky. First, Fannie has a published list. If not there, your buyer's next step depends upon their down payment. If less than 25%, a full condo questionnaire must be done and then the underwriter runs the approval thru a computer program called Condo Project Managet. Less emphasis is put into owner occupancy (more on delingquencies), but it is reviewed. If your buyer puts down 25% or more, the lender may do a limited project review and occupancy is not even a question.
And finally, if all else fails, the buyer's lender can put in for a Fannie Mae waiver for $200. (Typically the buyer would really want your unit to shell out $200).
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