Posted on: 24th Mar, 2010 09:00 am
I am currently looking at a condo in NYC that is new construction and currently has less than 50% occupancy. My bank will not provide a mortgage even if I put 30% down. What risks does the bank have exposure to? Should I not even consider this building?
Thanks.
Thanks.
FNMA guides require 51% occupied. That's why they're having an issue. You need to find a lender that will accept less.
condo values can drop rapidly, especially if they become unoccupied. the value of your property is directly affected by the rest of the building, so your 30% deposit doesn't really guarantee the abaility to recover the debt if the whole place drops in value due to low occupancy
