for example, Fannie Mae may back a 97.5% loan on such a property with a 680 credit score, whereas your local mortgage broker cannot do the loan for less than 90% LTV and a 720 credit score.
I would recommend you check with at least three different lenders, national and local at least, to see what can actually be accomplished.
A good place to start may be eLoanRates.org, our clients have had decent success with them recently.
There are many types of conventional programs available for purchases. Consult with a good lender to get that question answered. You may be able to get a loan with 5% down or less. I recommend Joe Massey at Castle and Cook Mtg. - 303-809-7769.
Robert McGuire ASR
Your Castle Real Estate
Direct - 303-669-1246
Here's why: let's say on a $300,000 house a 10% down payment is $30,000. That's a lot of money. Let's use 5% down conventional, which takes that amount down to $15,000 and you get to keep $15,000 liquid in your savings account.
I don't know why lenders don't tell people this, but the difference in your monthly mortgage payment ($30,000 down vs $15,000 down) will only be around $150.00 more per month.
Julie Montgomery, RE/MAX Masters, Inc., Greenwood Village, CO http://www.jmontgomery.com or 303-771-9400.
Kenneth P. Caiani
Loan Officer / Team Lead
Team Site: http://www.about.me/kencaianigroup
He's an outstanding lender who will treat you well. If there is a niche product out there, he'll know about it.
You can search downtown condos via this link: http://tinyurl.com/denvercondos
~ Rick Janson
Denver Lifestyleâ„¢ Real Estate
I see that you did receive lots of answers; however, everyone of them are in regards to FHA loans. My lender does conventional loans that only require 3% down. FHA loans have lots of restrictions including the owner occupancy ratios. I have had many condo listings that had buyers but couldn't get past the owner occupancy ratios, HOA financials, etc. Also, they have mortgage premiums (thousands of dollars up front) and mortgage insurance which can save you approximately $100/month depending on the purchase price. I referred this lender to the buyers for my listings because their lender couldn't get their loan closed. My lender made it happen on every occasion. He's very responsive, ethical and diligent! Call me!
I don't know if you found an answer for your question because it was posted a few days ago. Anyways, I have a lender who has a convention loan with 3% down and no mortgage insurance or premiums. Although, there is an income cap it's not too low. Give me a call and I would be happy to set you up with him and also if you are in need of a great buyer's agent, I have a platinum (100%) customer satisfaction rating from Quality Service.
I am a Realtor that keeps his office, home, and recreation nesteld amongst these concrete towers in the sky that you and I both know as LoDo! One of the main home page slideshow photos, of a downtown sunset, will show you the evening view from my office - I share your passion for this type of construction, it is one of my specialties - see http://www.BrianFurer.com
I would take to heart the advice of the last couple Loan Officers that responded, they are very much correct, the answer is: "It depends"...... depends on if the project is on the FHA list, warrantable, etc. For example, The Beauvallon just lost their FHA approval! This changes things for the buyer. Truly, the question should be approached on a case by case basis. The best route to go is for you to see which programs (and subsequently what down payment) is right for you, then we match that with the correct building.
Or, if you have a specific building in mind, we simply run that by your lender.
This "problem" was made more pronounced by the foreclosure boom, whereas the buildings ravaged by foreclosures had most of that inventory reabsorbed by investors, who in turn rent them to a subsequently growing rental market. While good for the HOA to have the units generating operational revenue again, many buildings have lost their certification.
In response, some lending institutions are devising programs for this very situation, non-FHA, non-warrantable condos. I have personally represented a buyer who was able to put 3.5% down on an FHA qualification loan, but it was actually conventional as the project had only sold 50% of the units! This type of portfolio loan can work in specific situations. If the usual methods don't work on a specific building, you can then try those avenues.
I would enjoy this project - if you do not already have a Realtor please do feel free to contact me!
Brian A Furer
Broker Owner, VIP Real Estate Co
If you are saying it is FHA approved, but there are less than 50% owner occupants, then it would not be eligible for FHA financing.
If it has more than 30% renters in it, it is not eligible for traditional FNMA financing. Also, if there are more than 15% delinquencies on the HOA (>30 days) than it is not elgible either. Either one of these would make it non-warrantable to FNMA, which requires higher down payment and above market rate.
If it is eligible for conventional financing then 5% down is acceptable if your scores and debt ratios are in line.
VA, needs to be VA approved to be eligible for VA financing and 100% financing, and you must be an eligible veteran.
Summit Home Mortgage Denver
The community is FHA approved late last year, but the condo survey has revealed that it has an occupancy ratio of less than 50% (I guess 2nd homes do not count in the occupancy calculation). Seems like a strong building I was very surprised when the survey came back.
We could do a 95% loan, under 417k however we would need to know the exact high rise project. I specialize in condo financing and would be able to shed light on the highest leverage product in the market. We also have a 2nd to 95% however, it is a very short amortization on the 2nd and would drive up your payment a bit. We would need to identify a few items within the HOA to make sure it is warrantable for Fannie/Freddie and the MI company. Also if you are veteran we can go to 100%.
Please feel free to give me a call and we can discuss the project and the best options.
Licensed, bonded, & insured--LMB 100028119 NMLS: 379387
10% allows for limited reveiw of the condo. This is why you are being told.
You can go 5% down by the guidelines but it falls on the HOA and if the condo is current to guidelines with Private Mortgage Insurance, Fannie Mae, Freddie Mac ,and/or FHA.
It is very hard to do in today's current environment in Denver. Everything has to fall into place and most of the time the borrower has to bring more (10% down) to get the deal closed because something fails to meet a guideline with condo and HOA.
724 S Pearl St
Denver, CO 80121
There are lender questions and there are real estate agent questions. This one is a bit of both, leaning toward the lender. The condo market has more variables than the single family residence does, with HOAs, investor/owner occupied ratios and FHA approval ratings. Many times the answers are clearer when the question relates to a specific building and unit. I'd suggest you speak to your lender (if you need a recommendation, I'd be glad to provide you with my favorites) about what you want in a loan- down payment amount, monthly payment, interest rates- and the amount of home you will qualify for. Then take a look around the Denver market to see what you like and what suits your needs. You may find that some great buildings don't look so pretty on the 'inside'. Have you thought of purchasing with a 3.5% down FHA loan? Interest rates are competitive and can be a great option. Please don't hesitate to call if you need more info or would like to see what the downtown condo market has to offer.
Good luck on your journey!
Tracy Shaffer, Broker Associate
Your Castle Real Estate
Having your financing in place first is the best approach to purchasing a home congratulations. I can answer your question but it would be a dis-service. I have a lender you can call.
Kevin Sprintz 303-641-7728. He recently helped me with a buyer that had less than perfect credit.
If you need help shopping for a downtown home I would be more than willing to assist.
Give me a call ans Good luck to you.
Verde Denver Real Estate & Property Management
Your best bet is to contact a lender. There are many different programs available that may interest you. If you would like I can put you in touch with some great lenders. Thank you
You are best off talking to a lender. Give Morgan Pennington a call at Gateway Mortgage.
I just used Gateway to purchase my own home. I used a VA loan, but Morgan offers many types of loans. Many without PMI.
Best of luck,