Home Buying in South Boston>Question Details

Zanzhe, Home Buyer in Boston, MA

Spot Approval Question

Asked by Zanzhe, Boston, MA Tue Aug 12, 2008

Can anyone help with this. I need a spot approval for a unit that is part of a 3 unit condo. The questionnaire asks if any entity owns more than 10% of the total condo project which in my case is "no". My underwriter seems to be of the opinion that there is a discrepancy since the appraiser comments that the subject unit comprises of 37% and therefore over the 10%. Doesn't the "no entity owning more than 10%" refer to ownership interest whereas the 37% refers to the total square footage of the condo? Could some one please help me clarify this? Thanks

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As an appraiser, I have appraised TONS of condos which were part of a 3-unit complex (multi-family conversions in the city...JP, Dorchester, etc...). In this case each of the 3 owners owned 33.3% of the project. With an explanation in the addendum, this has never been an issue with any underwriter. The appraiser just has to explain that "this type of condominium project (3 units) is typical for the area, and not considered adverse to marketability" is usually the verbiage I use. Shouldn't be an issue.
1 vote Thank Flag Link Tue Aug 12, 2008
GREAT QUESTION: Based on what you stated 37% pertains to ownership NEVER has anything to sq. ft. lender cant loan money if the ratio is off. Tax rolls shows who has the ownership for a condo property.
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0 votes Thank Flag Link Tue Aug 12, 2008
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