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I'm going to be looking at buying a condo in the next year or so and I'm doing some preliminary research. My main question concerns the occupancy requirements. I am going to be using this as my primary residence.
If I find a unit that is not more than 50% owner occupied(however I end to occupy the unit) does this lock me out of all frannie mae/freddie mac(ie I will only be able to get a portfolio loan?) insured mortgages or does it only lock me out of FHA?
Can I get a 80/10/10 loan and avoid PMI on a condo? How much higher are the interest rates on loans taken out on condos.
If I do have to get a portfolio loan, are the downpayment requirements, qualification requirements and rates much higher than traditional conventional requirements. I'm not so much worried about my qualifications but for resale.
I'm going to be looking at buying a condo in the next year or so and I'm doing some preliminary research. My main question concerns the occupancy requirements. I am going to be using this as my primary residence.
If I find a unit that is not more than 50% owner occupied(however I end to occupy the unit) does this lock me out of all frannie mae/freddie mac(ie I will only be able to get a portfolio loan?) insured mortgages or does it only lock me out of FHA?
Can I get a 80/10/10 loan and avoid PMI on a condo? How much higher are the interest rates on loans taken out on condos.
If I do have to get a portfolio loan, are the downpayment requirements, qualification requirements and rates much higher than traditional conventional requirements. I'm not so much worried about my qualifications but for resale.
What is Fannie or Freddie warrantable today, may not be so tomorrow. I've seen their status change in the blink of an eye. Lenders use something called condo project manager, the underwriters feed the answers to the lender's questionnaire. This can allow for a slightly higher investor concentration, even up to 50% investor. What will not be approved are condos with inadequate reserves, lawsuits or over 20% commercial. You can find 80/10/10 financing, without a marked up rate, likely at a credit union. Condo purchase with less than 20% down, highrise, or seconds typically have loan level pricing adjustments (meaning higher rates), but credit unions typically do not.
Near me around 90% of the older/smaller condo developments are not fannie/freddie eligible as it is a lot of work to apply and fill out the forms and it is a small volunteer board. Why bother. Plus the smaller buildings would rather have more money down.
The brand new buildings are mostly eligible plus the newer and larger ones. My complex we only sell around one unit a year. And to be honest the board cares about owners not ex-owners or future owners which is the main benefits of being fannie/freddie eligible bedsides slightly raising selling prices. But higher selling prices with lower down payments long term can hurt buildings with defaults.
Near me around 90% of the older/smaller condo developments are not fannie/freddie eligible as it is a lot of work to apply and fill out the forms and it is a small volunteer board. Why bother. Plus the smaller buildings would rather have more money down.
The brand new buildings are mostly eligible plus the newer and larger ones. My complex we only sell around one unit a year. And to be honest the board cares about owners not ex-owners or future owners which is the main benefits of being fannie/freddie eligible bedsides slightly raising selling prices. But higher selling prices with lower down payments long term can hurt buildings with defaults.
Can you get a non-frannie/freddie loan with 20% down and a reasonable interest rate?
I'm deciding on whether to pursue a condo I definitely am not interested in paying cash, but will be able to have a 20% downpayment. However I'm not going to live in a 1 or 2 bedroom condo for the rest of my life(I'm in my late 20's) so I'm rethinking buying one if I am going to have a real hard time selling it when the time comes even if I can obtain financing.
Can you get a non-frannie/freddie loan with 20% down and a reasonable interest rate?
I'm deciding on whether to pursue a condo I definitely am not interested in paying cash, but will be able to have a 20% downpayment. However I'm not going to live in a 1 or 2 bedroom condo for the rest of my life(I'm in my late 20's) so I'm rethinking buying one if I am going to have a real hard time selling it when the time comes even if I can obtain financing.
I would say 50% of folks pay cash for condos near me. They say a condo is for the "newly wed" and "nearly dead".
The young folks do mortgages, local credit unions are pretty good with condo loans.
I would say 50% of folks pay cash for condos near me. They say a condo is for the "newly wed" and "nearly dead".
The young folks do mortgages, local credit unions are pretty good with condo loans.
The old folks are downsizing and pay cash.
Most credit unions and most portfolio lenders are fine without a condo project being Fannie or Freddie warrantable.
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