Condo refinancing with less than 50% occupancy
I was approved a couple months ago for a HARP loan on a condo. It's considered an investment property, has a value of 119,000 and the current loan is 140,000, so loan to value is about 118%. I was approved by AimLoan and everything was ready to close until they pulled the HOA questionnaire and saw that over 50% of units were renters. That sunk the deal despite my excellent credit and approval for the HARP program. It seems this is a huge barrier for condo owners and credit unions have told me that they would not be able to help. The condo is located in Murrieta, California. Where can I go to refinance? by Tami59_597_172 from Murrieta, California. Oct 4th 2011
Walt Terry (ARMortgage)
#6 ranked lender in Arkansas - 11 contributions
The issue you are running into is that its whats considered non warrantable. The property would not be eligible to be sold to Fannie Mae or Freddie Mac. I would suggest you contact a local bank and see if you can get a in house loan versus a secondary market loan. You may be able to get a bank to do a 5 or 10 year loan amortized over 20 or 30 years. There no place right now in the secondary market for these property tpyes.
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
I'm not aware of any loan program outside of HARP that would allow financing on a condo, less than 50% owner occupied, and 118% LTV... this loan does not exist... Hard Money, Soft Money, or Conventional, FHA, VA, USDA.. Your only shot is to go back to your original lender and see if they will refinance you under HARP... they already have your loan, so there would be no additional risk for them... WilliamAcres.com
Rudi Hofmann (CaPortfolioLoans)
#281 ranked lender in California - 380 contributions
William is spot on Tami. Good luck. ...... Happy funding, Rudi
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