cash-only condo complexes

[SK in CV]

[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?

[/quote]

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.

[SD Realtor]

Yep I agree with you and I “think” the 10% ownership by a single entity may still apply!

It is definitely only getting harder.

I think that if the sellers agent does a background check on say the past 7 years worth of sales in the complex, if they are all cash then maybe a couple calls to the previous agents involved in the transactions will identify the root cause.

[SD Realtor]

Yep I agree with you and I “think” the 10% ownership by a single entity may still apply!

It is definitely only getting harder.

I think that if the sellers agent does a background check on say the past 7 years worth of sales in the complex, if they are all cash then maybe a couple calls to the previous agents involved in the transactions will identify the root cause.

[SD Realtor]

Yep I agree with you and I “think” the 10% ownership by a single entity may still apply!

It is definitely only getting harder.

I think that if the sellers agent does a background check on say the past 7 years worth of sales in the complex, if they are all cash then maybe a couple calls to the previous agents involved in the transactions will identify the root cause.

[SD Realtor]

Yep I agree with you and I “think” the 10% ownership by a single entity may still apply!

It is definitely only getting harder.

I think that if the sellers agent does a background check on say the past 7 years worth of sales in the complex, if they are all cash then maybe a couple calls to the previous agents involved in the transactions will identify the root cause.

[SD Realtor]

Yep I agree with you and I “think” the 10% ownership by a single entity may still apply!

It is definitely only getting harder.

I think that if the sellers agent does a background check on say the past 7 years worth of sales in the complex, if they are all cash then maybe a couple calls to the previous agents involved in the transactions will identify the root cause.

[NicMM]

Cantab,

My recent buying experience is just the opposite to most people believe. I guess I am lucky or what.

I just closed escrow with a short sale condo in a less desirable area. The price is under 100k. It’s an investment property and I got it financed.

Since we sent the offer, the seller’s lender tried to contact me. I didn’t answer the early phone calls because the phone number was unfamiliar to me. Until my agent told me about that lender, I picked up his phone call. Then everything worked out very well. We got the loan from that lender.

Maybe you can find out who the seller’s lender is and try if you can get a loan from them.

Just my 2 cents.

-NicMM

[NicMM]

Cantab,

My recent buying experience is just the opposite to most people believe. I guess I am lucky or what.

I just closed escrow with a short sale condo in a less desirable area. The price is under 100k. It’s an investment property and I got it financed.

Since we sent the offer, the seller’s lender tried to contact me. I didn’t answer the early phone calls because the phone number was unfamiliar to me. Until my agent told me about that lender, I picked up his phone call. Then everything worked out very well. We got the loan from that lender.

Maybe you can find out who the seller’s lender is and try if you can get a loan from them.

Just my 2 cents.

-NicMM

[NicMM]

Cantab,

My recent buying experience is just the opposite to most people believe. I guess I am lucky or what.

I just closed escrow with a short sale condo in a less desirable area. The price is under 100k. It’s an investment property and I got it financed.

Since we sent the offer, the seller’s lender tried to contact me. I didn’t answer the early phone calls because the phone number was unfamiliar to me. Until my agent told me about that lender, I picked up his phone call. Then everything worked out very well. We got the loan from that lender.

Maybe you can find out who the seller’s lender is and try if you can get a loan from them.

Just my 2 cents.

-NicMM

[NicMM]

Cantab,

My recent buying experience is just the opposite to most people believe. I guess I am lucky or what.

I just closed escrow with a short sale condo in a less desirable area. The price is under 100k. It’s an investment property and I got it financed.

Since we sent the offer, the seller’s lender tried to contact me. I didn’t answer the early phone calls because the phone number was unfamiliar to me. Until my agent told me about that lender, I picked up his phone call. Then everything worked out very well. We got the loan from that lender.

Maybe you can find out who the seller’s lender is and try if you can get a loan from them.

Just my 2 cents.

-NicMM

[NicMM]

Cantab,

My recent buying experience is just the opposite to most people believe. I guess I am lucky or what.

I just closed escrow with a short sale condo in a less desirable area. The price is under 100k. It’s an investment property and I got it financed.

Since we sent the offer, the seller’s lender tried to contact me. I didn’t answer the early phone calls because the phone number was unfamiliar to me. Until my agent told me about that lender, I picked up his phone call. Then everything worked out very well. We got the loan from that lender.

Maybe you can find out who the seller’s lender is and try if you can get a loan from them.

Just my 2 cents.

-NicMM

[ljinvestor]

I just closed on an investment condo in San Diego with aimloan. Did 25% down to keep rate & closing costs very low.

Here are the 4 things they required of the property which can be answered by condocert or property management company filling out questionnaire.

1. Are at least 51% of the units occupied as a primary residence or second home

2. Does any single entity own more than 10% of the total units?

3. Are there more than 15% of the condominium/association fee payments more than one month delinquent?

4. Is the project currently a party in any litigation?

The answer to #1 had to be yes and answer to #2-4 had to be no or they will not finance it. Some lenders may have a way around those but I’m sure its a very small pool. I also assume down payment and rate would be higher

[ljinvestor]

I just closed on an investment condo in San Diego with aimloan. Did 25% down to keep rate & closing costs very low.

Here are the 4 things they required of the property which can be answered by condocert or property management company filling out questionnaire.

1. Are at least 51% of the units occupied as a primary residence or second home

2. Does any single entity own more than 10% of the total units?

3. Are there more than 15% of the condominium/association fee payments more than one month delinquent?

4. Is the project currently a party in any litigation?

The answer to #1 had to be yes and answer to #2-4 had to be no or they will not finance it. Some lenders may have a way around those but I’m sure its a very small pool. I also assume down payment and rate would be higher

[ljinvestor]

I just closed on an investment condo in San Diego with aimloan. Did 25% down to keep rate & closing costs very low.

Here are the 4 things they required of the property which can be answered by condocert or property management company filling out questionnaire.

1. Are at least 51% of the units occupied as a primary residence or second home

2. Does any single entity own more than 10% of the total units?

3. Are there more than 15% of the condominium/association fee payments more than one month delinquent?

4. Is the project currently a party in any litigation?

The answer to #1 had to be yes and answer to #2-4 had to be no or they will not finance it. Some lenders may have a way around those but I’m sure its a very small pool. I also assume down payment and rate would be higher

[ljinvestor]

I just closed on an investment condo in San Diego with aimloan. Did 25% down to keep rate & closing costs very low.

Here are the 4 things they required of the property which can be answered by condocert or property management company filling out questionnaire.

1. Are at least 51% of the units occupied as a primary residence or second home

2. Does any single entity own more than 10% of the total units?

3. Are there more than 15% of the condominium/association fee payments more than one month delinquent?

4. Is the project currently a party in any litigation?

The answer to #1 had to be yes and answer to #2-4 had to be no or they will not finance it. Some lenders may have a way around those but I’m sure its a very small pool. I also assume down payment and rate would be higher

[Author]

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