Financing in San Francisco>Question Details

Joe, Home Buyer in Menlo Park, CA

Can a condo owner own more than 10% of a condo tower? Does he violate some lending rule?

Asked by Joe, Menlo Park, CA Mon Jun 11, 2012

For example, there is a 2 unit condo building with 2 owners. Can the first owner get a loan and buy out the other owner's condo, thus making the 1st owner the sole owner of a 2 unit building? Does he violate a 10% lending rule or violate a 51% owner occupied rule?

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Hi Joe,

For your example scenarios. I dont see any real reason why 1 person could not own both units in a 2 unit building when both are condo's.

As for "rules", different lenders have different guidelines.Some are laws, some lender standards and some are specific to the lender and the risk level they want to take.

Does it become more difficult to find financing if the owner ratio is low ? Yes it can, but there is usually a lender who will consider it, but in a small building this can usually be resolved in my experience.
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0 votes Thank Flag Link Tue Jun 12, 2012
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