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Condos have class warfare as well. Lenders will not issue mortgages for condos in developments which are not majority owner-occupied. This means that lower-priced condos often have major liquidity constraints where these condo owners can sell only for cash, which allows cash buyers to strip distressed sellers of their equity.
There are actually Fannie Mae rules about this.
Nonsense. Total BS. People will just not lend to you apparently. What's your credit score --250?
Fannie Mae has rule about everything, but they absolutely accept mortgages from investor owned property.
Not true, I once rented a guest house and when the owners relocated, they were willing but not allowed to sell it to me, i.e. I could afford to buy it but it was never mine.
You thought you could afford it, but since you can barely afford a cheap room in a boarding house, I seriously doubt that was truly the case. You've repeated this story often, but always fail to take in to consideration the fact that even if they "could" sell it to you, somebody would have to pay the fees involved in splitting a property, which are quite considerable. Do you think they would do this for free?
Not true, I once rented a guest house and when the owners relocated, they were willing but not allowed to sell it to me, i.e. I could afford to buy it but it was never mine.
No the bank was unwilling to participate in the sale because YOU are not credit worthy. If you had the money, you could have bought the house. You obviously didn't have enough money.
Nonsense. Total BS. People will just not lend to you apparently. What's your credit score --250?
Fannie Mae has rule about everything, but they absolutely accept mortgages from investor owned property.
tsk tsk...you need to do your homework. Investor-owned condos are ineligible for Fannie Mae financing unless a majority of condos in the development ('project') are owner-occupied:
FANNIE MAE CONDO REQUIREMENTS
Existing Condominiums (5 or more units in project)
Square Footage: Appraiser must provide at least 2 comparable sales on similar properties to demonstrate market acceptance.
Minimum Square Footage and Unusual Floor Plans
There is no minimum square footage requirement for conforming and non-conforming loans. However, the appraiser must provide comparable sales to demonstrate market acceptance. This also applies to properties with unusual layout and floor plans.
Reserves: Condo Association must have 10% of total annual income in reserves
Occupancy and Down Payments Required:
Owner Occupied units: If building has less than 51% owner occupancy, not an issue.
Max LTV 90% on primary residence (10% down payment required)
Max LTV 75% on Second Homes: (25% down payment required) Investor purchases: Building must have at least 51% owner-occupied. If less than 51% owner-occupied, Investment loan is ineligible
Owner Occupancy, Condos and Financing how they relate and what it means if you want to buy a condo?
Do you know what Owner Oc Rate (O.O.R.) is? The ratio of owners living in a community compared to rented units. EX: 100 units in a condo 65 of them are rented out leaving a 35% owner occupancy rate.
What does this mean for buying a condo. Well if you are looking to obtain FHA financing you need at least 51% O.O.R. and the HOA to be in good standing plus have FHA approval. You can find if a condo is FHA approved at THIS SITE. What if the condo is below that 51%? Then no FHA financing and you must do a conventional loan.
No the bank was unwilling to participate in the sale because YOU are not credit worthy. If you had the money, you could have bought the house. You obviously didn't have enough money.
where on earth did you get that idea?
i had private financing up to $50k from my employer. the listing agent said we'd need to subdivide the lot and that the lot was not large enough to divide. we were also told that no title company would touch that and that we should ask the city, which confirmed what she told us.
You thought you could afford it, but since you can barely afford a cheap room in a boarding house, I seriously doubt that was truly the case. You've repeated this story often, but always fail to take in to consideration the fact that even if they "could" sell it to you, somebody would have to pay the fees involved in splitting a property, which are quite considerable. Do you think they would do this for free?
My 'old' employer - for whom I worked onsite 20 years and for whom i still work remotely - offered financing up to $50k, the agreed purchase price was $40k. How does it cost more than $8k-$10k to split a simple platted lot?
i had private financing up to $50k from my employer. the listing agent said we'd need to subdivide the lot and that the lot was not large enough to divide. we were also told that no title company would touch that and that we should ask the city, which confirmed what she told us.
Quote:
Originally Posted by freemkt
My 'old' employer - for whom I worked onsite 20 years and for whom i still work remotely - offered financing up to $50k, the agreed purchase price was $40k. How does it cost more than $8k-$10k to split a simple platted lot?
in other words your locality wont allow tiny lots for what ever reason. as for the cost of splitting up a lot, you would have the cost of a survey team involved, and that isnt cheap by any means, and then there is the cost of getting an attorney to lobby the local government to gain a zoning exemption so you can subdivide the lot, and that wont be cheap either.
in fact i think $10,000 would be cheap to get all that done, i think you would be looking at more like $25,000-30,000 easily.
in other words your locality wont allow tiny lots for what ever reason. as for the cost of splitting up a lot, you would have the cost of a survey team involved, and that isnt cheap by any means, and then there is the cost of getting an attorney to lobby the local government to gain a zoning exemption so you can subdivide the lot, and that wont be cheap either.
in fact i think $10,000 would be cheap to get all that done, i think you would be looking at more like $25,000-30,000 easily.
I understand classism well enough to know there was never any hope in applying for a variance. Not to mention that a variance would have created a non-conforming use which would have created more ownership risk than I was willing to undertake.
I understand classism well enough to know there was never any hope in applying for a variance. Not to mention that a variance would have created a non-conforming use which would have created more ownership risk than I was willing to undertake.
in other words you are really just content to rent from others, and then complain that no one is willing to let you buy a piece of property that you can call your own.
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