Asked by Anyhope?, Connecticut • Tue Jul 21, 2009
We just lost our buyer because she couldn't get PMI on her loan (15% down) because our complex has less than 51% owner-occupancy. I have done a LOT of online research in the last 4 days and keep seeing an explanation of the new rules (implemented in Jan) that:
"Fannie Mae requires that established condominium projects consisting of attached units have an owner-occupancy ratio of at least 51 percent at the time the loan is originated (purchase or refinance) if the mortgage loan being delivered is secured by an investment property. Established projects where borrowers will occupy the unit or use the unit as a second home are not subject to any owner-occupancy ratios."
This is right from the Fannie Mae announcement. Am I reading this wrong? It sounds to me that if our buyer had planned to LIVE in the unit the ratio shouldn't matter.
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