[quote=SD Realtor]Sk clearly your case was an exception. Also if the condo you were talking about was going to be purchased as an owner occupied unit but all of the sudden someone makes a bulk purchase to throw the ratios completely out of whack then of course a lender will not loan on it for owner occupants. No lender would. Was the property for owner occupancy or for an investment?
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The buyer was intending to occupy the unit. But was willing to pay non-owner occupied rates. But there were a couple problems that made a loan a practical impossiblity. The GSE and FHA requirement for owner occupancy I believe is currently 51%, which kind of strangely includes REO as owner occupied. I believe the complex barely met that requirement. But there is (or at least one time was ) also a requirement that no single owner owns more than 10% of the units. Back in the old days this wouldn’t be a fatal flaw. There were always the private lenders. (I think private money MBS’s are still dead.) So the choices are conventional or warehouse lender. And apparently, for low owner occupancy condo projects and/or complexes with a single owner owning a high percentage of the units, there is no such thing as private money. The very few warehouse lenders won’t lend on those kinds of projects either. At least wouldn’t lend on this particular project, and it may be the same thing with the OP’s project.
But you’re right, it could also be ongoing CD litigation.
