Help!! - Posted by Tammy

Posted by Tammy on January 09, 2001 at 11:41:53:

I know the small loan is also a problem. The broker got back to me, it seems the ratio isn’t quite as bad as what she’d thought. It’s actually 30% owner occupied…still not enough for FannieMae or FHA, but enough that a private lender may take it.

As for going back to the bank, the bank APPEARS to have sold it to a realty company (or the realty company was the mortgage holder). This realty company has the property listed through a second realty company.

Thanks for the advice Ed.

Help!! - Posted by Tammy

Posted by Tammy on January 09, 2001 at 10:57:40:

Here’s my situation. I’m 3 weeks from closing on a condo, and my mortgage broker has just come back to me saying that I’m going to have trouble financing the loan. This isn’t an investment property (at least not yet). I plan to live in it for a year or so while I fix it up and build some equity then lease/option it or sell it outright. Here are the particulars:

Purchase Price: $27,500, 10% down
ARV estimated at $40,000+

My credit is good enough to get me a conventional insured mortgage and I have the closing costs. My problem? The complex is only 15% owner occupied leaving 85% owned by investors. My broker is working on finding me other financing. Why is this such a big problem? Any suggestions for where I can find my financing that won’t care about the investor/owner ratio? This isn’t a bad neighborhood. The complex had been under bad management and suffered because of it, but is improving quickly under the new management. The condo doesn’t even need that many repairs. It’s a bank repo. They just replaced the carpets and painted it to help it sell. I know I can get hard money, but I’d rather have a conventional mortgage with a low interest rate if I can get it.

Re: Help!! - Posted by Ed Garcia

Posted by Ed Garcia on January 09, 2001 at 11:22:28:


My first inclination is to send you back to the lender who financed it before. I realize that it’s an REO, and I’m sure that they are offering the below market price because they want to get it off of their books. But the lender is not stupid. If you explain the problem you are having, just as you have in your post, and then tell them that you see this as an on going problem, not matter who purchases the condo. They may consider you, a qualified buyer for a new loan.

Tammy, you have two problems here. Not just the one you have stated, but the other problem is the size of the deal. Most mortgage Companies won’t even want to fool with the deal because it’s too small. I think that’s another reason your broker is having problems with your deal.

Tammy, if need be, go to the lender yourself and plead your case. You can do it Tammy, you can do it.

Ed Garcia