The information in this answer provided by Attorney Ranj Mohip is general information and is not intended as legal advice, nor does the attorney intend to create an attorney-client relationship with any reader by answering this question or otherwise contributing as a member of Trulia.com.
Senior Mortgage Consultant
1333 N. Kingsbury, Ste, 201, Chicago, IL 60642
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Condo Approval Professionals LLC
Yes you can sell buy your pool of buyers will be smaller and very limited since your building will not qualify for an FHA mortgage.
If you're still planning to sell, talk to a sellers agent and make sure that agent has relationships with various lenders. Ask them to put together a "sellers packet/promo" for you. Something along the lines if the preferred lender is used they may offer closing cost credits, or, they can offer a lower down payment loan product on your building, something creative.
Interview a few sellers agent, start with the ones that answered your question right here on Trulia, myself included. Find one you mesh best with, one you feel has a good understanding of your scenario is willing to go the extra mile for you.
However you can obtain coancentional financing with Fannie Mae and freddie Mac Products - but the buyers will need 20% down.
None of the big banks will lend in the building so you will need to find some smaller banks that 'portfolio' their loans. However, some buyers get turned off by buildings that have so low a % of owner occupied units. There are soooo many buildings in your situation that I believe in time more lenders will decide to offer products that work, but at the moment there are not many. My web site has some lender references that might be able to help.
Yes, you will still be able to sell your home but buyers will no longer be able to obtain an FHA loan for financing. They will have to go with a conventional loan instead which may require more of a down payment (20%) to avoid PMI (mortgage interest) but even with an FHA loan the buyer would still have to pay the mortgage interest fees.
Hope this helps.
Good luck on selling!
Prudential Connecticut Realty