Financing in 23517>Question Details

Paul R Sande…, Renter in Norfolk, VA

Lending for a Condo with 45% Owner Occupancy as an Investment Property

Asked by Paul R Sanders, Norfolk, VA Thu Jul 12, 2012

Our condo complex is approaching 55% Renter Occupancy and we have found it increasingly difficult to sell. Not because we can't find a buyer, but because the many people interested in purchasing could not get a loan!

Because of the Rent/Own Occupancy ratio, we of course are not FHA or VA approved, and have recently found out that even Conventional loans will at best require 20% down, but still may not even be available depending on the lender.

We have since found an investor who is very motivated and can put 30% down. He has reached out to many lenders with no success because he is not planning on occupying the unit. Our agent and a local Mortgage Specialist have done the same. 

He wants our place, and we want to sell it! Is there anyway to make this happen?

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You need to find a lender who has a portfolio program that doesn't have to follow the rules set by Fannie and Freddie. If you get what's called a limited condo review that is the only hope thru Freddie and Fannie but the question of the investor concentration is still asked generally even on the limited reviews. A smaller bank and or a local credit union might do it. That's about the only places that will these days. Good luck. Cash is also an option but then the seller will have you over a barrel and will almost certainly offer less. Perhaps you can turn it into a rental?

Thanks,
Brent Mendelson
First Mariner Mortgage
nmls#111407
0 votes Thank Flag Link Thu Jul 12, 2012
Paul, I have had several buyers run into the same problem. I have two loan officers that might be able to help. email me at jackblake.realtor@gmail.com or text me at 757-339-2327 & I can send you thier contact info.
Jack
0 votes Thank Flag Link Thu Jul 12, 2012
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