Hunting portfolio lenders for a non-conventional property

Day 7 - #100DaysOfRealEstate

After I got my offer accepted on my first deal, I started hunting for lenders that would accept to loan on this type of property.

The apartment doesn't qualify for a conventional loan because, although it is in the writings that the property applies for the horizontal property regimen, this one is non-operating. Horizontal property regimen means that the property is part of a condominium with rules, hoa fees, organization, etc (to my knowledge). In the case of this property, there is no home owners association, no reserve nor hoa fees. This is not unusual in my area for a 5-plex apartment building. The apartment where I currently rent, in a 6-plex, neighbors just talk to each other and agree on what should be done with the building, if anything. 

This means the loan will be made with the property qualifying as non-conforming. This means the interest is going to be higher. I'm going to speak tomorrow to various lenders and want to compare the lenders that will sell the loan vs portfolio lenders. Portfolio lenders don't sell the loan and tend to be more flexible. This is favorable for me because they could lend up to 85% and have lower closing costs. Tomorrow I will call best friend's father that is lawyer for a cooperative what they can offer.