There are other reasons why a condo may not be FHA approved, owner occupancy, percentage of commercial or live/work spaces, for example. But I have to tell you, Konil, it doesn't appear that this is a disclosure requirement in Texas.
Many of the documents that are signed during purchase do advise the "buyer" to satisfy themselves as to many issues that might effect the property.
This type of information will be uncovered regardless, when it comes time to try to get a loan. As you found out, you cannot get a loan when a property has too many units owned by the same person.
Perhaps this could change in time? If not, when you sell you can indicate that it must be a cash sale due to the loan restrictions you have discovered.
I am a realtor and not an attorney. The seller may not have had that information. When a prospective buyer is purchasing and obtaining a loan yes lending institutes have restrictions on the total percent that an individual or investment company can own in a complex. During the loan process all parties would have been aware if one party owed more that the maximum percentage for lender to make the loan. You purchased all cash information could have be check but you probably did not consider this restriction when you purchased. I would check with Mortgage Brokers. If they cannot do the refinance ask for referring Mortgage Co. Do not give up there is a possibility that refinance can be done just not with Fannie Mae.
Gail Mercedes Cole
You might be able to get private loans which have a higher interest rates, but that does not help you for future resale. Give me thumbs up if this is useful to you!
Muriel Levin, Broker - Realtor
HAFA certified,Certified Negotiator, Short Sale and Foreclosure Resources Specialist. Residence, income properties and commercial leases.
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