Home Buying in Detroit>Question Details

Bebe, Home Buyer in Detroit, MI

I am interested in buying a condo in Detroit that is not Fannie Mae insurable and I'm having difficulty

Asked by Bebe, Detroit, MI Thu Mar 26, 2009

finding a bank/credit union that would offer a mortgage even with 15-20% down. The condo would be my primary residence and it is in a high rise building (Park Shelton). Any suggestions?

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4
Hi Bebe

Not many lenders are doing financing for "non-warrantable" condos any more. Non-warrantable means that the building or development does not meet Fannie Mae or Freddie Mac's guidelines, most likely due to not having yet met % pre-sale requirements or having a high investor concentration. For these reasons, FHA would not approve a mortgage either.

Further complicating the situation is that the PMI companies won't insure these properties either so even if lenders would lend you would need at minimum a 20% down payment.

Is the developer/builder still selling units in the building? If so then I would think they'd have a relationship with a bank who lends to prospective buyers. If not, then like Paul said, check with several local banks. I wouldnt waste your time with credit unions. They normally don't hold any of their paper and usually have stricter guidelines.

Best of luck
0 votes Thank Flag Link Sun Mar 29, 2009
Bebe,
I am going through the same problem in St. Joseph.
What we have found is a local bank that will keep the loan in house, (called portfolio loans) and knows the development.
That type of loan is easier to obtain for other than cookie cutter curcumstances.

So, try the local banks that are pre dominant in your area.

Good luck!
Paul Dumke
0 votes Thank Flag Link Thu Mar 26, 2009
Try a conventional loan. You're probably trying for a FHA loan that doesn't fit the criteria for the loan to qualify.

If you need FHA, see if the builder is planning on getting FHA approved or if the sub is more than 90% complete.
0 votes Thank Flag Link Thu Mar 26, 2009
BeBe,

Give me a call at the office. I'm not quite sure what you're saying you need. I don't want to advise you incorrectly.

Sincerely, Valerie

(313) 877-9006
0 votes Thank Flag Link Thu Mar 26, 2009
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