Question about purchasing unwarrantable condo

[Mike Girenko]

Hello everyone. Wanted to get an opinion on my current situation…

I am in the process of purchasing a condo, which I am planning on renting out. I have to get an investment loan because this will not be my primary residence. Seller's agent, my agent, and my loan person were all aware of it. There is no issue with my credit, loan preapproval, or down payment. My agent and loan officer contacted seller's agent and HOA and verbally confirmed that there will be no issues with getting an investment loan, the condo was not under litigation, and that the ratio of owner's to renter's was in line. With 10 days left before the closing my loan officer informed me that my loan will be declined because this apartment complex has 70% of rental units. And I will most likely lose the money spent to date. Property inspection, condo certificate, and property appraisal added up to around $1000. Which I would hate to lose because I do not feel like I did anything wrong. It looks like my loan officer ordered property appraisal before getting condo certificate – not sure if this is normal or not. My question is – do I have any way to recover the money which I spend so far? Thank you all for advance. Mike

[Linda Weygant]

Run, don't walk to your local First Bank and tell them you need a portfolio loan.  They can still close this for you.  They'll loan in a a non-warrantable complex.  

Good luck!