Financing an investment condo with less than 50% owner occupancy

[Shalabh Jain]

I am looking to finance an investment property (condo) purchase in Washington State. 

My offer is accepted and now I get to know that owner occupancy is less than 50%

Can anyone suggest any lender who would finance such a property ?

Thanks !

[Richard Scholtz]

Hello @Shalabh Jain

That is standard FNMA guideline. They do not want condos that are 100%  rental units with a lot of H.O.A. dues past due so the buildings cannot pay for upkeep and all get turned into meth labs. The FNMA condo guidelines are all here  https://www.fanniemae.com/singlefamily/project-eli...

Condo projects and properties which don't meet Fannie Mae and Freddie Mac warrantability standards are known as non-warrantable.

Non-warrantable condos are more challenging to borrow against.

Typically, a condo is considered warrantable if:

• No single entity owns more than 10% of the units in a project, including the developer
• At least 51% of the units are owner-occupied
• Fewer than 15% of the units are in arrears with their association dues
• There is no litigation in which the homeowners association (HOA) is named
• Commercial space accounts is 25 percent or less of the total building square footage

What  you want is lender that will lend on NON warrantable condo project. 

There are bunch of PORTFOLIO lenders that do NOT sell their loans to FNMA. They can and will lend on such projects and rates and term are not that much different. Your large down payment meets their requirements.

Reach out if you want those details.....your problem is not a problem