Posted on: 01st Apr, 2010 08:44 am
hi,
i currently have my massachusetts condo up on the market, i have received 4 offers so far (4 out of 5 showings) all within hundreds of my asking price, none of these folks are able to get financing because my owner occupancy is only around 20%.
i purchased the property 4 years ago with the same % but obviously as the market has changed banks and private lenders have become tighter with financing.
the potential buyers only optinos are to have 20% to put down. my selling price is only 123,000.
i can not refinance because of the same issue and need to sell the property, not for a lack of funds but because of a relocation. rents average 300 or so under my mortgage and condo fee's.
any thoughts from anyone??
the idea of a short sale seems ridiculous to me when i can pay for the property (not with much to spare ofcourse) and have good credit, pay my bills etc..
i currently have my massachusetts condo up on the market, i have received 4 offers so far (4 out of 5 showings) all within hundreds of my asking price, none of these folks are able to get financing because my owner occupancy is only around 20%.
i purchased the property 4 years ago with the same % but obviously as the market has changed banks and private lenders have become tighter with financing.
the potential buyers only optinos are to have 20% to put down. my selling price is only 123,000.
i can not refinance because of the same issue and need to sell the property, not for a lack of funds but because of a relocation. rents average 300 or so under my mortgage and condo fee's.
any thoughts from anyone??
the idea of a short sale seems ridiculous to me when i can pay for the property (not with much to spare ofcourse) and have good credit, pay my bills etc..
you might want to be pro-active on behalf of your prospective buyers and seek out a lender who can provide financing without the concern of occupancy ratios. they do still exist, though in short number. i'd have to think that non-secondary market players would be the best bet (cooperative banks, credit unions, community banks, and the like).
if you've seen any other units selling in the not-too-distant past, you can do some research and find out who's providing the funding. hopefully, rates will be competitive. it may be a lot of work on your behalf, but it may well be worth the trouble as well.
if you've seen any other units selling in the not-too-distant past, you can do some research and find out who's providing the funding. hopefully, rates will be competitive. it may be a lot of work on your behalf, but it may well be worth the trouble as well.
thanks, nothing has sold other then a forclosure in a year. Another owner one building over eventually took his off the market for the same reason. My realtor suggested that we find a lender who could do it, most have told me that it is law? I am not sure if that is true that a non FHA approved condo that has less then 50% occupancy must have 20% down??
I haven't heard of any such rule. It would be better if you could have a word with your FHA lender and check out the laws.
Is this a new condominium that is not all sold yet or is this an established condominium with the owners in control.
I can not tell if, when referring to owner occupancy percentages, you are referring to how many units are occupied by owners in an established condo project or if you are referring to a new condo that is not over 51% sold and under contract yet.
I ask because there is no owner occupancy requirements for established condos if the unit being purchase will be owner occupied. I that case, you just need to know if PMI is available.
I can not tell if, when referring to owner occupancy percentages, you are referring to how many units are occupied by owners in an established condo project or if you are referring to a new condo that is not over 51% sold and under contract yet.
I ask because there is no owner occupancy requirements for established condos if the unit being purchase will be owner occupied. I that case, you just need to know if PMI is available.
john, i wish i had your investors way back when. everywhere i have been there has been a no-go when there was less than 51% occupancy - whether with fha or conventional. on the off chance that we could do a spot approval (those seem to have dried up), it would be incumbent upon an association to be honest, of course, but that's been the only way to get them done (if at all).
i've found that getting a condo approved is a real bear nowadays.
i've found that getting a condo approved is a real bear nowadays.