Financing a condo with +50% rental rate
Hello all,
Looking for ideas for financing a condo where the complex has a greater than 50% rental rate. We were originally going to do a conventional mortgage, but were told that, "When purchasing a condo, one of the requirements to qualify for a conventional loan is that the % of units in the total condo complex that are rental units has to be 49% or less. This is a Freddie Mac requirement..."
The bank looked into doing a portfolio loan, but that particular bank was not able to do so. We have found one company willing to do a conventional loan, but at 2-3% points higher than we were originally quoted before they knew it had a greater than 50% rental rate.
We are also currently investigating owner financing, but wondering if anyone had encountered this before and came up with a creative solution. This property is in the Hampton Roads area of Virginia.