Hi, I'm looking for a lender that can finance a bank owned condo that has a negative budget.

Asked by Bergals, Chicago, IL Tue Aug 16, 2011

The borrower will be borrowing 170k, using the first time home buyer program, putting down about 8.5% that will be a gift, with a median credit score of 666.

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Bradley Egge…, Mortgage Broker Or Lender, Oakbrook Terrace, IL
Wed Aug 17, 2011
Bergals,

Are you saying the condominium project has a negative budget? If so, as a lender, I'd be asking my client why they'd even want such a property. Owners of units are going to either get a nice hefty special assessment at some point or a big increase in the monthly HOA. Or worse, necessary maintenance and repairs will go unaddressed.

More importantly, with 8.5% down, mortgage insurance is going to be required. And with a gift for down payment and a credit score in the 660's, FHA financing is most likely the only route. And if this condo project indeed has a negative budget, it won't pass for FHA financing.

I'd recommend you find a loan originator to pre-approve you, particularly one that will give you sound conservative advice that may at times be contrary to his or her own interests of just getting you a mortgage to get paid.

Bradley Eggers
Senior Loan Originator
Midwest Equity Mortgage
bradley.eggers@ardain.com
1 vote
Evelyn S. Fr…, Agent, Chicago, IL
Tue Aug 16, 2011
Or you can call Matt Bukovy 773-416-7107 or email him mbukovy@wintrustmortgage.com.
0 votes
Matt Laricy, Agent, Chicago, IL
Tue Aug 16, 2011
Call Tony Lupescu w/ MetLife 708-351-6416
Web Reference:  http://AmericorpRe.com
0 votes
Mark Malave, Agent, Chicago, IL
Tue Aug 16, 2011
Contact Ryan Mecum at rmecum@wintrustmortgage.com
0 votes
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