Financing in Medford>Question Details

John, Home Owner in Medford, MA

Refinancing a low owner occupancy condominium.

Asked by John, Medford, MA Fri Nov 19, 2010

Hello, I have been trying to refinance my condo unit and I am having some difficulty in doing so. I have good credit and stable income. Is there anyone who can help me? The building has a low owner occupancy rate.

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I know of a local bank that will finance non warrantable condos - like yours. They require excellent credit, 10% equity and decent reserves. If you fit this criteria I can help arrange a quote
2 votes Thank Flag Link Fri Nov 19, 2010
The making home affordable programs are a joke and a mess in my opinion, I would welcome others….
Most people that have tried have not been able to qualify even though they meet the guidelines and would qualify according to the info available. It is a long process, involving bureaucracy and customer service that often has no idea about anything and recommend or send wrong info and applications….. Just to figure out who to call can take you several hours…..
But here is the official info

Your issue is the low owner occupancy but what you need to do is sit down and call all the local banks until you get your answer unfortunately.
I wish I could be more helpful on this.
1 vote Thank Flag Link Wed Dec 1, 2010
You may be able to attend an association meeting and speak with your neighbors. Specifically the last to move in may tell you who financed theirs.
1 vote Thank Flag Link Fri Nov 19, 2010
I'm sorry you are having trouble.
As stated, there are programs for "nonwarrantable" condominiums if that's your case plus, depending on the number of units, FHA has suspended some investor concentration requirements temporarily. It would have been helpful to know more about the condominium project - number of units, number of owner occupied units among those and the name of the condominium project. You would best have a discussion with your mortgage person about this or, if you wish, with me.
Best wishes for a great 2011!
781-862-0585 x 223
0 votes Thank Flag Link Thu Dec 30, 2010

I have a mortgage broker that I do a lot of work and he has been using the HARP program to assist folks in your situation. Contact me directly if you would like a referrals. Best
0 votes Thank Flag Link Thu Dec 2, 2010
Hi John,

Conventional (Fannie Mae/Freddie Mac guideline based) financing (with or without PMI) generally allows for a non-owner occupany rate of 30% (exceptions can be made on a case by case basis).

FHA financing allows for a non-owner occupancy rate of 50%. FHA may be the best option for you and the unit owners in your building. This would require your association to go through the FHA Condo Approval process if your building is not already FHA approved.

Hopefully this helps, please contact me if I can assist you further.

0 votes Thank Flag Link Thu Dec 2, 2010
Hi John,

There is a program called HARP; Home Affordable Refinance Program. It is a program that was put in place through the Obama Adminstration to help home owners who are having difficulties refinancing through today's guidelines. haI believe one of the requirements are that you have made your payments on time for the last 12 months. I believe this to be the link. It requires your existing lender to provide the refi. Last i checked, if you had PMI, you could NOT use the program. However they did say to try back in December to see if that changes. GOOD LUCK. My name is Kelly Dimbat., 617 519 9798 or
0 votes Thank Flag Link Fri Nov 19, 2010
Find a local lender and see if they'll "portfolio" the loan - keep it in their own loans and not try to re-sell it on the secondary market. This is one of the issues with condo ownership. Because lenders are under much more scrutiny when they submit a secondary market loan package, most are adhering to the guidelines very strictly.
0 votes Thank Flag Link Fri Nov 19, 2010
John, it has become more difficult to get financing for condos, and I think lenders are now requiring greater than 50% owner-occupancy. Hopefully this will ease in the future, but I don't know any lenders who will take your loan. Your best bet is to try a local bank. Good luck!

Web Reference:
0 votes Thank Flag Link Fri Nov 19, 2010
I suggest you find out the last condo in your association purchased and speak with your new neighbor.
Ask them who their mortgage is with.
0 votes Thank Flag Link Fri Nov 19, 2010
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