are there ways around fannie mae restrictions for refinance?
I currently have a 30 year FHA loan on a condo unit and was recently denied a refinance into a 30 year conventional loan based on a fannie mae restriction in which no one owner in a condo unit may own over 10% of the unit. The problem is i live in a 12 unit condo development and the local county government owns 4 of the units which they lease for affordable housing. The county was deemed an individual owner and my refinance was denied. Is there a way to get around this restriction or are there loans that don't require fannie mae approval? by ksamuel00 from silver spring, Maryland. Apr 21st 2015
Gene Neal (eneal@athccorp.com)
#31 ranked lender in New York - 281 contributions
Your best option is an institution that accepts unwarrantable condos. Feel free to reach out and I'll do all I can to help you qualify.
Michael DiMarzo (mdimarzo)
#6 ranked lender in Maryland - 21 contributions
Not sure why you are looking to refinance? Lower Rate, Debt Consolidation? If you received your current FHA loan before May 2009. Why not just streamline the refinance back to a FHA Rates are Great and Mortgage Insurance doesn't increase? Please call me I also might have another way to Refinance your loan.301-685-6676
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
Ah.. add this to the list of many reasons one should never buy a condo.. anyway.. All loans are sold on the open market.. that's what Fannie Mae does.. they are a clearing house where the mortgages are purchased, block together, securitized, and then sold on the open market.. For condo's to be allowed in this block of securitized mortgages, they must meet eligibility guidelines.. or be "Warrantable".. your's is not.. FHA will allow for a Streamline refi on a condo that is no longer FHA approved, but not every lender allows this, so you need to deal with mortgage brokers not banks.. Brokers have access to numerous lenders with each one offering a different set of guidelines.. the more lenders, the more lending programs and the greater likelihood your loan will get accepted.. outside of FHA, the only other financing available to you would be lenders willing to lend with their own funds and held within their own portfolio.. you need a lender that will allow for "Unwarrantable" condos.. They are out there but be sure your sitting down when you hear the rate and terms.. Also understand that you will face the same problems when you go to sell your condo if the buyer is trying to get financing on it.. you can refinance using FHA, but they will not issue a new "Purchase" loan unless the project meets eligibility requirements.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com
Linda Wintersteen (Linda123)
#63 ranked lender in Arizona - 1,256 contributions
If your credit is decent, I can do personal lines of credit up to $200,000 and will not need documentation.. email m@outlook.com I have clients that buy houses with the lines. linda
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