Just to clarify, I live and invest in Va. Beach, Va. now. Just down the “right coast” from you. I would never move to the west coast on purpose. I did live in San Diego on military orders only for a couple of years and then promptly moved back.
Every now and again something comes up that throws you for a loop. Here is mine. I own a condo in Virginia Beach, VA. I am trying to sell it with a realtor at reduced commission. I found a full price buyer and the property was under contract. She cannot get an FHA loan on the property due to the fact that there are too many rentals in the condo complex where the property is located. Has anyone heard of this? Any insight would be much appreciated. How would you sell it? Owner financing perhaps? Thanks again
Yes, unfortunately that will be a common experience in many condo complexes. If your buyer is limiting her financing to FHA or FNMA conforming loans, the owner occupant ratio may not qualify for financing.
I own several condos in a complex that is about 50% owner occupied. I have no problem getting a non-conforming loan for my purchases. Even national lenders such as Countrywide offer non-conforming loan products. Banks that sell all their loans might limit themselves to only conforming loans.
Is what is indicated by Assn’s that have fewer than 25% rentals. Many are limited to that by their by-laws, and the one’s who aren’t have a track record of higher rate of default, lower appreciation… and even devaluation, and overal all instability. Obviously, from a lenders point of view, all these factors can and will impact the security of the mtg. Hence, the problem you are facing.
Many times in order to sell a unit in a condo assn. that doesn’t fit the FHA lender profile, owner financing is the avenue.
Many lenders have guidelines they follow, including owner occupancy minimums in condos (70%,75% or more). FHA is usually the most strict. Why is she going FHA? Is it possible for her to get a conventional mortgage, or maybe from a portfolio lender who has the lowest guideline parameters?
I was born in VA. So said my parents and says my birth certificate. Haven’t been back for over 20 years.
I’d suggest that you look in at the assessor’s roll and see who bought properties in the complex most recently. Then look in the land records office and see if they got loans when the bought. If so, those are the lenders to contact first, I’d suggest.
Unless you are do owner-financing as a regular strategy, I’d suggest not to do it. Make it a last resort. Money is nicer than mortgages. Suppose we could make a muscial number out of that phrase? With dancing $100 bills?
Good Investing****************Ron Starr**************
Thanks as always for your advice. I was not born in Va although both of my children were. I am a transplant from Connecticut. I am active duty military right now as well as part time investing. I have checked the land records as you have suggested since they are online in this city. I will have to go to the courthouse since I can’t view the actual deed of trust of someone who got financing recently from the website. Thanks again for the advice.