Roland Minard, Trident Mortgage
Dave Simhony (856) 906-6881
you can get financing with 25% down with programs for unwaarrantable condos. Some local portfolio lenders may go up to 80%.
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
VOTED BEST IN BUCKS 2010
Unfortunately condos suffer indiscriminately too many cookie cutter lender rules.
You are referring to rules surrounding 'Conventional' Fannie-Mae' financing. Fannie-Mae insured loans are eventually packaged with others and sold on Wall Street as securities
Each condo should be looked at for its unique merits. Owner occupancy is only part of the picture.
I feel confident that you will have a better opportunity to get the purchase funded if your client can put down a minimum of 20% down and use a local Bank 'portfolio' lender. This type of loan will require a slightly higher interest rate than a plain vanilla Fannie-Mae insured loan. The loan from a local portfolio lender is held within the lenders Bank. Moreover, local portfolio lenders offer greater flexibility in their condo review process.
Charles Balducci 215.531.2000
Coldwell Banker Preferred (Avenue Arts)
At least 51 percent of the total units in the project are occupied as a primary residence or second
home if the subject unit is to be used as an investment property. The owner occupancy pre-sale
requirement may be waived if property is a primary residence or second home.
It's done when the loan is submitted to underwriting (appraisal required), and the other documents that are required would be:
Conventional Condominium HOA Questionnaire
Conventional Condominium/PUD Warranty form
Master insurance policy dec page
Engineerâ€™s report for conversions created in the past 3 years
Agreement of Sale
The other is if in Fannie Mae's DU (Desktop Underwriter), we get a "Limited Review" findings (a comment that says it's eligible for a Limited Review), and in that situation the owner occupancy requirement isn't required - 90% LTV maximum for primary residence & 75% LTV maximum for 2nd homes (investment properties are ineligible).
https://www.efanniemae.com/sf/guides/ssg/sg/pdf/sel063010.pdf - page 566 describes the "Limited Review".
We lend in Pennsylvania (all 50 states), I've personally done financing for a few purchases in the Philly area as well. Let me know if you'd like help.