Any advice for someone wanting to buy before the (small) building is 70% sold?
I'm looking to buy one unit in a 3-flat. Two banks have told me that it must be 70% presold before I can get a mortgage through them. I read up on the recent increase of Fannie Mae/Freddie Mac underwriting requirements from 51% pre-sold to 70%, so I understand. But with 3 units, it won't be 70% sold until it is 100% sold. I assume there must be other underwriters with a lower presold requirement (or exceptions for a smaller number of units), but I can't figure out how to find a loan by a specific underwriter. Any advice?
Lara,
Not all funder sources are created equally. Different mortgage brokerages have access to some similar and some different funds. Historically Wells Fargo had a significant portion of the new construction market - I don't know what shape they are in now. But it seems to me that Guaranteed Rate has the capacity to fund a purchase such as yours so long as you have the credit score and downpayment they stipulate. n addition, I wonder who holds the construction loan for the developer you seek to purchase from and whether they have the capacity to engage in residential funding to support your purchase. At any rate, Guaranteed Rate seems to be a good option.
All the best,
Tom McCarey
The Real Estate Lounge Chicago
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