Financing in 94112>Question Details

Erogden, Home Seller in 94118

Is it possible to finance a condo apartment in a 5 unit condo building with 50 percent rentals in San Francisco?

Asked by Erogden, 94118 Mon Mar 26, 2012

0 votes Share Flag Financing in 94112

Help the community by answering this question:


A 5 unit building can not be 50% rentals. As that would equal 2.5 units rented.

Here are some key questions that need to be answered in order to determine which lenders will consider this property:
- Are you interested in purchasing this property as your primary home, a second home or as a rental?
- What is the expected loan amount and purchase price?
- How many units will be rentals once your purchase is complete?
- Does any one entity own more than 1 unit?
- Is the HOA involved in litigation?
- What percentage of HOA dues are more than 30 days delinquent?
1 vote Thank Flag Link Mon Mar 26, 2012
Hi Erogden,
Difficult but not impossible. There are some local portfolio lenders who will do the loan, but you may not be able to get a 30-year fixed rate and you also may have to put more than 20% down. Other agents here may be able to quote you the precise product available. The landscape changes so frequently, that it's difficult to keep up.

You may (may!) also be able to get approval for the condo building from a larger institutional lender like W-F or BofA, but the process could be lengthy, time-consuming and not at all certain.
1 vote Thank Flag Link Mon Mar 26, 2012
I agree with the answer above. First Republic has been very good at offering solutions that others won't. Another woman I work with at California Real Estate Loans, Incorporated of San Mateo, Connie Buchanan, might be it would help you to because this is not a usual scenario that most lenders will address. Also, it depends on other factors such as the number of units and – perhaps – eviction histories, FHA status, litigation, all the above and more. This is all the more reason why you should consider going with the mortgage broker who has experience and creativity as most bank representatives may not be able to help you.
0 votes Thank Flag Link Mon Mar 26, 2012
Usually the only one that will do it is First Republic. We also use another broker who has a lot of resources and may be able to come up with something. Contact info below if you want referrals:

Best Regards,

Lance King/Owner-Managing Broker
DRE# 01384425
0 votes Thank Flag Link Mon Mar 26, 2012
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