Non-FNMA Approved Condo

[Jeffery King]

Hello to all of you more seasoned investors.  I am a relatively new investor.  I have a handful of deals under my belt.  I am working on a deal with a 2/2 condo right now.  It's in a great area and there's absolutely no work needed to be done on the property.  The area rents well (approx. $1350/mo). 

The lender that I have been using has informed me that the condo is not Fannie Mae approved due to the fact that one owner owns more than 10% of the units. I can't get a conventional loan. The deal makes sense if I want to lease but it doesn't make sense financially to get a HML and flip.

1.  Can anyone suggest where I might go to get a loan at just slightly higher interest rates so that I can still make decent margins renting the property?

2.  Would anyone more seasoned even invest in a condo that is not FNMW approved (understanding that the rental data in the area is strong)?

Thank you.

Jeffery

[Phil G.]

You might look up Upen Patel from The Federal Savings Bank here on biggerpockets.  He had a program for non-warrantable condos.  The minimum loan was $100K.