Chinatrust will do 40% down, 3/1 ARM @4.5%, and aren't strict on those land lease issues as we don't resell our loans to fannie mae and basically make up our own guidelines to whatever we want.
1. There is just too much inventory and not enough people who want to live in the area. It is kinda far out from anything relatively speaking. That usually spells price drops, and mortgages + price drops don't mix!
2. I hear there are some potential tax issues in regards to the BPC land lease from the government. It seems that there might be a surge in building taxes coming up and that could make the condos there lose value. Look at it like other areas of town, the higher the fees/maintenance/cc/tax, the lower the price of an apartment to make up for it. I am not sure what happens if enough people do not occupy a building when it has to pay the government for land leases. A building default? Could be trouble!
3.The prices of apartments there are just over priced! If the bank assesses the value of an apartment/building lower than the cost of the building's purchase price, they won't let you mortgage it!