Conventional financing on a condo

Asked by Donna Kuns, San Diego, CA Thu Nov 17, 2011

I have more than 50% down with down payment assistance, but as I understand it, the unit still has to comply with fha guidelines even for conventional financing.
Does any one know who would finance, I San Diego area, without meeting those guidelines?

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Robert Chome…, , San Diego, CA
Sat Nov 19, 2011
For conventional it does not have to comply with FHA guides. If you can get a DU approval with a condo waiver sometimes the lender will not even need owner occupancy %. You have a very good shot with 50% down conventional especially if you plan to occupy the condo.
0 votes
Jeff Smith, Agent, Poway, CA
Sat Nov 19, 2011
Hi Donna -
That does sound strange but lending is no walk in the park these days. You may want to follow what Ted is saying below. If you need financing help, I have many lenders I can refer you to for assistance.

Jeff Smith | Realtor® | Your Best Choice!
HÔM Sotheby’s International Realty
858.367.4333 direct | 858.756.1150 office | 858.756.1171 fax
Jeff.Smith@SothebysRealty.com
DRE #01056750
0 votes
Chris Gorno, Agent, Carlsbad, CA
Thu Nov 17, 2011
Yes I do Donna! I know several. Scott Evans with Prime Lending does the financing for most of the condos in Downtown San Diego (and anywhere in San Diego County), and can usually get condo financing when other Lenders cannot. Let me know if you are interested and can't get his contact info, I can send to you. I am also curious where the down payment assistance is coming from, is it a loan program or a family gift? Good Luck!!
Web Reference:  http://www.chrisgorno.com
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David Dukes, Agent, Chula Vista, CA
Thu Nov 17, 2011
There are banks that portfolio loans and do not need to resell loans which would require meeting FHA guidelines. I can get you with the right bank. With conventional loans, you do not need an FHA approved condo complex, but the condo complex needs to have an owner occupancy rate of about 81% and HOA delinquencies of no more than something like 10%. (actually less I believe). Some lenders have a little room to flex on this. But the condo comples does not need to be FHA approved complex and in fact, many condo complexes are capable of being FHA approved but opt not to go through the certification process due to the legal fees involved as well as not wanting the first time homebuyers with only 3.5% down payment FHA loans as it can negatively impact the HOA delinquency rates on their complex. David Dukes, MBA daviddukes@hotmail.com
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Michael Abram, , Los Angeles, CA
Thu Nov 17, 2011
Hello Donna,

What exactly is the problem with the condo complex? If you can go 25% down, I have lenders that will not require any documentation other than the HOA insurance policy, but it will still require a satisfactory appraisal, so there would not have to be issues with owner occupancy, litigation, special assessments, more than 20% being used for commercial space, etc. If I can be of assistance, please let me know.

Michael Abram
First Capital Mortgage
NMLS #235060
Direct: (310) 434-1718
Cell: (310) 995-0975
mabram@firstcapitalmtg.com
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Brian Simant…, Agent, San Marcos, CA
Thu Nov 17, 2011
Where is the down payment assistance coming from?
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Ted Canto, Mortgage Broker Or Lender, Scottsdale, AZ
Thu Nov 17, 2011
Hi Donna,

What you may have experienced is a lender that has their own imposed restrictions.

The property does not have to comply with FHA reqs however it does require that it comply with Fannie Mae requirements and that the HOA Cert/ Questionairre be clean (Warrantable). Very few lenders do what is known as a Limited HOA Review which allows most of the deal killing questions to be removed from the questionairre. I only know 1 other lender than the one I work with that still accepts them (I am sure some others do as well but it is a very small minority). If you'd like, we can take a look at it and determine whether the property qualfies. Let me know.
Web Reference:  http://tedcanto.com
0 votes
Mary Lawler, Agent, San Diego, CA
Thu Nov 17, 2011
Hi Donna,
You must really want to live there. I've seen you prior question about getting the complex FHA approved. Is it not approvable? Is the FHA cert expired?
Call Shanne Sleder with the Mortgage Planners. 619-312-0612. He is doing a fast-track FHA approval (called DELRAP) for me on a condo complex with an expired FHA cert.
If he can't do it, you may have to go with a private investor whose guidelines allow for more flexibility.
Please tell Shanne that I sent you!

Good luck!
Mary Lawler
Realty Executives Advantage
mlawler@realtyexecutives-sd.com
Web Reference:  http://www.MaryLawler.com
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