Posted on: 23rd Oct, 2009 02:39 pm
In a condominium that is basically secondary dwellings and vacation rental property how is owner-occupied defined. I was told that if it was used solely as a secondary residence that it qualified. There are 57 units, 27 of them are rented out (22 of those may be rented for one night), of the remaining 30 units 2 or 3 might be full time occupancy by owner, the rest use it as a secondary residence. Does this qualify us as 51% owner-occupied?
Thanks!
Thanks!
http://www.mortgagefit.com/know-how/about29729.html#130338
It is probably not correct to say that 100% of lenders treat primary and vacation residences as owner occupied when determining if the remaining investor concentration is too high, however, most do.
john, am i reading what you said correctly? that lenders will consider second homes as owner-occupied for determining the ratio in a condo? i find that hard to believe - not the possibility, but that you'd say that. i have never come across a situation in which seasonal residence would count as owner-occupancy. in the above scenario, that condo is being used as a transient/hotel - with one-night stays, etc. no way does such a complex get an approval for owner occupancy.
well, you said it's "probably not correct." with that i absolutely agree.
well, you said it's "probably not correct." with that i absolutely agree.
