OT: HOA pending litigation

[HLS]

[quote=sdrealtor] The problem is that when they require cash for an extended period of time owner occupancy drops making the day they can be financed that mcuh further away.[/quote]

% of occupancy usually only matters when buying a condo AS A RENTAL PROPERTY.
It is not a concern as a primary residence.

There are many other reasons why the complex wont qualify for a primary loan, but occupancy shouldn’t be one.
They WANT primary owners to buy condo’s.

**Many complexes are ticking time bombs.

[bearishgurl]

[quote=HLS] . . .
**Many complexes are ticking time bombs.[/quote]

Very TRUE. And some have already exploded.

[sdrealtor]

[quote=HLS][quote=sdrealtor] The problem is that when they require cash for an extended period of time owner occupancy drops making the day they can be financed that mcuh further away.[/quote]

% of occupancy usually only matters when buying a condo AS A RENTAL PROPERTY.
It is not a concern as a primary residence.

There are many other reasons why the complex wont qualify for a primary loan, but occupancy shouldn’t be one.
They WANT primary owners to buy condo’s.

**Many complexes are ticking time bombs.[/quote]

Sheldon
Please explain this further as I have seen and heard of numerous loans getting denied because the owner occupancy was too low. Perhaps it is only some but not all loan programs. I would really appreciate an education here.

[SD Realtor]

sdr I have had it happen as well for several investors. On some complexes the owner occupancy rate needed to be at least 66% even though my client was financing it as an investment property. On other complexes I think it was as low as 50% but never below that.

[HLS]

[quote=sdrealtor] I have seen and heard of numerous loans getting denied because the owner occupancy was too low. Perhaps it is only some but not all loan programs.[/quote]

1. % of owner occupancy usually only matters when buying a condo AS A RENTAL PROPERTY.

2. % of owner occupancy should not be a concern when buying a condo as a PRIMARY residence (or 2nd home)

Are you saying that loans have been denied for PRIMARY RESIDENCE purchases due to % of occupancy ??
I am not aware of this happening.

NO LOAN is easy today, regardless of credit score, income, assets or equity. ALL guidelines must be met whether it is a 95% loan or a 25% loan.

The most difficult loan by far is an INVESTMENT CONDO loan.

There are 3 major lenders for condos:
FHA, Fannie and Freddie, each has their own rules.

For FHA the condo complex must be FHA approved or it is not eligible for an FHA loan.

Fannie Mae requires at least 10% down to buy a condo. (minimum 5% down to buy a house)
The guidelines will make anyone’s head spin.
Even an experienced underwriter cannot remember everything there is to know.
Here is a link to recent updates regarding FNMA condo loan approvals: https://www.efanniemae.com/sf/guides/ssg/relatedsellinginfo/condogls/pdf/projectreviewsummaryfaq.pdf

Is your head spinning yet ?? It gets worse & more complicated.

There are numerous reasons for condos to be ineligible for financing, not limited to budget, financial strength, litigation, insurance, delinquencies, one party owning more than 10% of complex, condition, reserves, fidelity bond etc.

[Author]

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