All Forum Posts by: Bennet Sebastian

Yes, you could use a credit union or community bank. The reason I suggest a broker is because you really need somebody who knows how to navigate the conventional Fannie/Freddie guidelines along with understanding the non-warrantable portfolio products. Specifically you need a broker who has the ability to go to a conventional lender with no overlays because this particular topic is a hot-button area for lenders to add their own overlays on top of Fannie/Freddie. I don't know exactly who you target to sell your property to but if they will be purchasing it as a primary residence, some of the guidelines differ for their scenario compared to another investor purchasing it. The 50% owner-occupancy rule is actually specific to an investment purchase, so it's really key to have somebody who knows how to distinguish Fannie/Freddie guideline from an overlay.

Hi @Bennet Sebastian,

Yeah, going to echo the other lender. Find a local lender licensed to broker - she/he may or may not call herself/himself a mortgage broker; focus on the license and not the self-proclaimed title (complete coin toss on if I call myself a loan officer or mortgage broker on any given day... both are true statements). Your buyers will still be able to get 30 year fixed financing. 

Put "non-warrantable condo" right on the MLS listing so you don't waste anyone's time

Put a little sign up saying "non-warrantable condo lender --->" and then leave out the business cards of someone local to you doing those loans out on a table or counter at the property. Don't FORCE them to use that lender or they will assume unlawful kickbacks are going on & who knows maybe their existing lender does non-warrantable too (but obviously throw out any retail big box bank offers... as always, but especially true here).

If the buyers gripe that the non-warrantable option has a slightly higher rate (it will), offer a seller credit to buy the rate down.

Non-warrantable condo end-lenders are a little extra conservative in most other regards to compensate for taking this risk, so don't get up in a huff if closing is two weeks slower than it otherwise normally is in your market. 

Just call around for a lender who can handle non-warrantable condos. You might have better luck with a solid mortgage broker. You'll probably see higher interest rates because it will be a portfolio product.

@Adrien C. @Bennet Sebastian   I acutally started my real estate career passing paper ( as its called in the industry... when I was 10 years old.

My dad was a RE salesmen.. and did not like the 2 leads a week he got from the company... these are called company leads.. think movie (Glenn Garry Glenn Ross a must see)... So he asked management if he could produce his own leads.. and it was allowed.

Well direct mail was 10 cents a piece so that was too expensive in 1966... So he went out and bought a printing press.. Put it in the garage and taught me how to print off the door hangers. I had to do this 2 hours everyday after school...

I just dropped 9000 on 2 zip codes. Cost me $1050. I'm sure I'll get my money's worth. The local marketing company uses homeless people to hang them and gives them $25 per 4hr day plus a place to stay. So if it doesn't produce- I'm not worried about the money not being spent well. Just like all marketing, it's all about timing. 

@Bennet Sebastian I added you to my list, let me know if you are not receiving property updates at least once a week.