Posted on: 15th Feb, 2009 07:54 am
hi,
i was in the middle of refinancing my 1 bed condo in nyc with my current mortgage holder (large, commercial bank). most homeowners in nyc stick with the same bank in order to avoid a mortgage tax levied by the city (1.75% of the mortgage) which is charged every time a new mortgage is issued, even if it is a refinance. my bank just notified me they cannot refinance me from 6.75% to 5% because the owner occupancy rate is too low (less than 30%) and their guidelines require 75% or greater. i've owned and lived int his unit for over 8 years, not to mention they did refinance me 2 years ago from a 5yr arm to a 20yr fixed rate and the terms of the building were the same (occupancy rate was still less than 30%)
my only option seems to be is to move to another bank and incur the 1.75% mortgage tax charge. do i have any recourse with my current bank at this time?
i was in the middle of refinancing my 1 bed condo in nyc with my current mortgage holder (large, commercial bank). most homeowners in nyc stick with the same bank in order to avoid a mortgage tax levied by the city (1.75% of the mortgage) which is charged every time a new mortgage is issued, even if it is a refinance. my bank just notified me they cannot refinance me from 6.75% to 5% because the owner occupancy rate is too low (less than 30%) and their guidelines require 75% or greater. i've owned and lived int his unit for over 8 years, not to mention they did refinance me 2 years ago from a 5yr arm to a 20yr fixed rate and the terms of the building were the same (occupancy rate was still less than 30%)
my only option seems to be is to move to another bank and incur the 1.75% mortgage tax charge. do i have any recourse with my current bank at this time?
It seems that your bank's guidelines have changed since your last loan with them. Many banks have changed how they finance condos now. For example, many banks will not fund condo conversions, condo complexes of less than 10 units, etc etc
recourse with your current bank? i'd say "no" to that question. as eric pointed out, guidelines change over time. you're likely to run into a similar situation with other lenders as well, inasmuch as virtually every lender deals with secondary markets that have specific requirements concerning owner occupancy, among other things.
check with another lender anyway - you have nothing to lose in doing so.
check with another lender anyway - you have nothing to lose in doing so.
It may be possible to refinance with another lender.
It would be helpful to know who the currentlender is?
Many lenders participaye in the assignment of the mortgage to avoid paying the 1.75% tax again and some are refusing to do so.
It costs some money to do the assignement, but, usually much less than the 1.75%.
A
It would be helpful to know who the currentlender is?
Many lenders participaye in the assignment of the mortgage to avoid paying the 1.75% tax again and some are refusing to do so.
It costs some money to do the assignement, but, usually much less than the 1.75%.
A
Also, is the mortgage over or under $417,000. There will be a difference in mortgage programs available depending upon whther or not the mortgage is in the Conforming or Jumbo or High Balance Conforming loan categoiry.
Just chiming in- we have the same issue here in San diego, and are wondering what our options are...
I guess, you will have to contact other lenders and check out if they can help you with refinancing.
The answer is no. Don't waste your time looking at other lenders as the standards are the same. I went so far as to try to refinance with a commercial lender and still no luck. Flat out, banks will not lend on a condo unit that has an owner occupany under 75%. Oh, and good luck selling it. It better pencil out because you are going to have to find a cash buyer.
People are getting mortgages in buildings with owner occupancies of 70%, 65%, and 60% every day. Keep looking and try to get information from the building management as to who financed recent purchases in the building.
If loan's 3rd party lender is Freddie Mac or Fannnie Mae, the new occupancy requirements are 51%