Unable to refi condo unit b/c of sponsor rules. Workaround?

[Tony C.]

Hi BP,

There's this condo unit in Manhattan, NYC that's having difficulty in a cash out refinance. Chase bank has denied the refi request due to the following reason (probably due to some Fannie rule):

"As I had communicated per our phone conversation the building cannot be approved due to the sponsor owning 35% of the units in the building at market rent."

Rather than visit a mortgage broker, is there a way to identify lenders or the type of lender who will be able to approve? (or if you know any specific lender, that'd work too). Attempts have also been made at a few local banks but it turns out these banks have their own bank-specific lending rules that do not allow the refi.

Thanks!

[Wayne Brooks]

You need a lender that loans on "non warrantable" condos. This will not be a Fannie or FHA loan.