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sportscarvell · Joined: 26 Jan 2010 Posts: 8 2.83 Dollars($)

My loan officer just told me that I could not REFINANCE or more importantly SELL my condo under traditional financing. Please tell me this is NOT true?!?

Here's the story: I cannot do either because (1) the developer owns more than 10-percent of the condos, which is 6 of 48. And then the kicker -- (2) the developer is no longer considered the developer but rather an investor because he turned over control of the HOA to the homeowners.

According to my loan officer, that makes EVERYBODY in the complex ineligible to REFINANCE or SELL ... unless the purchaser can buy with ca$h.

I'm in South Carolina. The condos are not FHA or VA eligible.

1. Does anyone know of any loan programs to get around this?

2. Any suggestions?

What a mess.

[Email address deleted as per forum rules. Thanks.]

jerry · Posted: Fri Dec 03, 2010 1:58 am Post subject:

Hi sportscarvell,

As far as I know, at least 60% of the condos should be occupied in order to get a mortgage or refinance. In my understanding, you do not meet this requirement. As a result, it will be difficult for you to get a mortgage. You can, however, speak to the lenders offering personal property loans and check out if they can help you in this matter.

Thanks,

Jerry

sportscarvell · Joined: 26 Jan 2010 Posts: 8 2.83 Dollars($)

Jerry: Thanks for your reply, although I'm not sure I understand it. Well, I may understand it, but I'm not sure how it applies to my initial question -- is there a way to get around that particular situation? You know, (1) when the developer owns more than 10-percent of the condos and (2) when the developer is now considered an investor because the developer turned over control of the HOA to the homeowners. Any suggestions there?

I understand what you are saying about 60-percent of the condos being occupied. However, to the best of my understanding, my loan officer says that the only two obstacles were the first two I mentioned.

I appreciate your feedback.

ANYBODY WITH ANY SUGGESTIONS? Thanks

jameshogg · Posted: Fri Dec 03, 2010 7:29 pm Post subject:

Hi sportscarvell,

The specifications may vary from one lender to another. You will have to contact other local lenders of your area and check out if they can help you in this matter. There may be lenders who may help you though you're in such a situation.

Thanks

sportscarvell · Joined: 26 Jan 2010 Posts: 8 2.83 Dollars($)

I got turned down by Wells Fargo, which has some of the most lenient underwriting in the banking industry ... anybody have any other ideas? AND DO YOU THINK I COULD PURSUE ANY LEGAL ACTION VS. THE DEVELOPER? I actually have someone who wants to buy my property, but they can't get financing because of the reasons at the very top (condo form)

jveenstra · Posted: Wed Dec 08, 2010 4:34 pm Post subject: Condo

If someone is buying your condo with less than a 20% down payment, you then need two approvals: one from the lender and one from the private mortgage insurance company. That is not likely to happen.

You need a buyer with 20% or more down payment and will live in the condo as primary residence. That means no PMI approval and automated underwritng gives us the limited review option.

Now, you need the exceptio for the guideline that no single investor own 10% or more of the units.
You need to ask lenders, even Wells fargo, if it is possible to process and ask for a FNMA waiver under such conditons. It may or may not be possible to get such a FNMA wiaver.
Also, contact lenders and ask if they have non-conforming condo products available. That may be one of the items they can still do a mortgage.

I am not licensed in SC and I am not familiar with lenders there.

ki2 · Posted: Fri Dec 10, 2010 11:20 am Post subject: sounds a little fishy?

The developer is now the investor in the eyes of the lenders because he owns 6 condos? Which he built. What was the basis of the denial from the mortgage broker/lender? I would think it would be conflict of interest for the investor to be the developer to begin with. Sounds odd to me... most fannie guidelines or conventional guidelines have rules about occupancy. Without seeing the commitment from the lender the broker was trying to use it is hard to say what the best course of action is. Get a copy of the commitment or denial from the broker. Why are you trying to refinance? Could you apply for a loan modification?

Guest

hi sportscarvell ,
welcome to forum

You need a buyer with 15% or more down payment and will live in the condo as primary residence. That means no pmi approval and automated underwriting gives us the limited review option. the possible proses waiver refinance condition
jay

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Impossible to REFINANCE or SELL my condo??? HELP

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