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Guest

I am looking for a condo in California and the mortgage lender I met a few days back tells me that until and unless 51% of the condo units are occupied by the owner of the condo itself, he will not offer me any loan. Is it a rule over there? Do all lenders have such a criteria?

Guest

I think it is necessary for the condo to be entirely full otherwise it will have no market value as such and will not attract potential buyers.

miller_st · Joined: 17 Jan 2007 Posts: 918 168.95 Dollars($)

Miranda, you need to shop with a few more lenders as all lenders do not ask for such criterion to be met before they will provide a mortgage.

Miller

willisaddo · Posted: Tue Apr 24, 2007 11:30 pm Post subject:

I would consider giving the financing if the condominium is at least 25% occupied. It really depends on which program we decide to go with. Give me a shout at your earliest opportunity and we can go over some scenarios together to find you a program that would be the best fit for you.

My name is Will. It's a pleasure to make your acquaintance.

Jessica

Hi Miranda and Will,

Welcome to our community forums.

Miranda, as far as I know, there isn't any such rule that the condo has to be owner-occupied to a certain percentage. Different lenders have different criteria of offering loans for a condo. The occupancy of such condos will also vary from one lender to another. Some lenders will appreciate an 80% owner-occupied condo while others may approve loans having occupancy below the said percentage.

Regards,
Jessica.

kenstampe · Posted: Thu Apr 26, 2007 12:20 pm Post subject:

You have different issues if looking for an FHA loan or if it is a conventional loan you are considering. Either way, the FHA or Fannie Mae/Freddie Mac have requirements on condominium developments before they will be insurable by FHA or conform to Fannie/Freddie guidelines. % occupancy is one of several requirements.

Typically when buying early in a condominium you have less financing options and you often have to look at a bank like Wells Fargo or Bank of America to do your loan. The reason is they can keep your loan within the bank until the complex meets the requirements. The small mortgage bankers and brokers can't do this obviously.

Usually the condo developer has suggested lenders with banks who will do the early purchases in the development. I know Bank of America will do unit #1 in a complex in most cases.

Guest

Thanks guys. But does it make any diffrence in going with a banker or a broker?

Guest

It does not make much of a difference but you need to check the rate offered. One thing is that broker can give you more options to select from.

Guest

man i have the same problem. i can't find no 1 to do my loan the complex is only 34% o/o and the rest are rentals. most of the lenders we have tlkd to want 50% and up.

miller_st · Joined: 17 Jan 2007 Posts: 918 168.95 Dollars($)

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