Under Contract and Mortgage Terms Just Changed

[Louis Zameryka]

I'm under contract for a condo for STR and I underwrote with a typical mortgage but my lender just came back after my initial approval to tell me that as of Jan this year Fannie and Freddie now consider the development to be a condo hotel. Which makes this a Non QM mortgage and more expensive to close both from an interest rate and fee point of view.

My offer to the seller included a $5000 deposit that was not contingent on financing. So I lose that if I walk.

The original underwriting would have lost me $50 a month for 18months this new version means $11k more in fees and about $150 a month in losses for 18 months.

Any advice for what I should do?

What additional info can I provide to help folks share advice?

Thanks

[Zach Edelman]

Quote from @Luke Carl:

Fairly common. Next offer you make you’ll know how it works! 

I win or I learn I never lose. 

 "I win or I learn I never lose." 

This quote couldn't hit harder to RE investing. Everyone has their own path, and it's how you will respond to adversity and difficult situations such as this one, that will strengthen and craft you as an RE Investor.