Posted on: 07th Jan, 2011 10:35 am
My son is refinancing his condo loan and the lender is saying that their institution has this requirement that at least 51% of the condos be owner occupied (FYI, the lender is going to sell the Loan to Freddie Mac/Fannie Mae). I checked the ratio for the condo building that my son lives in and it comes out ~46%. I also checked the Freddie Mac requirement and the >51% requirement applies only if condo unit is to be used as an investement property. So, my son's loan should be exempt from it, right. The question for you is that can the lender have a more stringent condition than what the Freddie Mac requires? And what can I do about it?
Thanks for helping.
Omega
Thanks for helping.
Omega
Normally lenders follow the rules and guidelines as set by Fannie Mae and Freddie Mac. They don't have stringent rules than Fannie or Freddie.
Besides basic Fannie and Freddie guidelines, banks create their own overlays the override those guidelines.
