How to get Owner Occupant Financing for an "Unwarrantable" Condo

[Keith N.]

Hi All,

I've been looking to make my first purchase for a few months now.  I finally found a seller who is willing to give me an excellent deal on an off-market condo.  I would be purchasing this condo for about 65K, which is about 10K below market value.

The seller and I are ready to move forward, however I cannot get a conventional mortgage due to this condo being unwarrantable. It is not unwarrantable due to a dysfunctional HOA or any red flags within the community. the only reason it is unwarrantable is because of the fact that due to the recent Fair Housing Act Laws, 51% of the community is supposed to be owner occupant. Because it is only about 5% owner occupant, ZERO conventional lenders will give me a conventional owner-occupant loan for the property. Seems like the most counter-intuitive rule ever IMO.

Anyways,  I've been doing my research.  I contacted a bank that offers commercial loan products.  I can't even get a loan from them because they expect 20%-25% down which would clean out my savings.  Furthermore, even if I had enough cash to get this type of loan, I wouldn't even be allowed to live there, as this would be a "commercial loan" for investment properties only!

Finally, I contacted the NC State Employee's credit Union to inquire about if they do financing for "unwarrantable" properties.  I had to call twice, as I got two people on the phone line who couldn't even comprehend what I was explaining to them (Yeah, my situation is kind of complex, but come on).  Eventually i got the answer that no, they will not finance any unwarrantable properties... I'm not sure if I believe this person or not as they appeared to have no clue how to initially answer my question.

Anyways, I'm in dire need of Ideas of how I could get low down payment owner occupant financing on this unwarrantable property.  I've ran the numbers and it's a good deal, the seller is more than willing to work with me, and I'm excited to purchase my first home.  Are there any lenders that can help me?

FYI, this property is in Raleigh NC