If bank approves for a mortgage loan but 95% condos/town house are not approved by banks. What are some other ways to get around?

Asked by Toni26, 32256 Thu May 3, 2012

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Henry Pruitt…, Agent, Orlando, FL
Thu May 3, 2012
Hello Toni26,

Yes there are ways to work around the banks loans to get a condo/townhouse but you will find that the money will cost you a lot more. As stated in another reply there is hard money, shorter term loans with very high interest. You can sometimes find private monies also very high interest rates. Even though the purchase price maybe lower after paying the interest you will have paid a lot more.

If you are approved by the bank then you should be able to get a home from the builder at the same price with several thousands in upgrades. For more information contact your agent or call me at 904.635.4861.

Regards,
Henry
0 votes
Maggie Hawk, Agent, New Smyrna Beach, FL
Thu May 3, 2012
Toni,
There are always some lenders (often quite large and well-known institutions) that will hold a certain portion of their mortgages as "portfolio loans."

Quite simply, a portfolio loan is held by the original lender for the duration of the mortgage. For this reason, these loans don't have to meet federal requirements for mortgages that are re-sold on the secondary market.

With a portfolio loan, you can avoid some of the most common issues that borrowers face when getting a mortgage on a condo/townhome, such as not enough owner-occupied units in the complex to meet federal guidelines. Good luck with your purchase.
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Lenee' Purdy, Agent, Jacksonville, FL
Thu May 3, 2012
Most condo's are approved however the condo must have a certain amount of owners/investors ect to be FHA approved.
Townhouses are usually approved as well.
Have your Realtor check with the association are look it up to see if the condo your interested in is FHA approved. any questions please feel free to call me 904-505-5083. Thanks
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Rob Burns- Y…, Agent, Jacksonville, FL
Thu May 3, 2012
Toni26
Many of my clients find that even though condos seem cheap...when you add up the monthly HOA and potential assesments they are just as expensive on a monthly basis as some single family homes which qualify for traditional financing. You may want to explore that option as well.
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Frank & Shar…, Agent, Fleming Island, FL
Thu May 3, 2012
Hi again Toni26,

There are private money or 'hard money' sources. They charge higher interest rates, but it is a work around for condos/town houses.

Hope you find this helpful. If you would like information on private money, just give us a call at 904-673-2308 or email at sharon@teamalters.com.

Sharon Alters
Coldwell Banker Vanguard
904-673-2308
sharon@teamalters.com
Web Reference:  http://teamalters.com
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Howard Vogin, , Boca Raton, FL
Thu May 3, 2012
Toni, not sure exactly what you are asking, but you should be able to find many town homes which are FHA approved - that would mean they qualify for 96.5% financing. Check with some of the large builders in your area.
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