amebuyer
Newbie
amebuyer
Posts: 2
Registered: ‎11-21-2009
Loans to buy condo with less than 51% occupancy?

‎11-21-2009 02:40 PM

We're trying to buy a condo in the East Bay, and we're running into huge problems getting a loan. It's a brand new complex, and we originally thought (based on information from the listing agent) that the complex was more than 51% sold/pending. We secured a loan based on that information, but a few days before closing, we found out that the complex was less than 51% sold, so the loan we had originally secured would no longer work. Our (well-respected) mortgage broker tried to find another lender, but he was unsuccessful. The sellers/builders recommended a lender, but we don't think they're reputable and don't want to use them. We need to know if there are any reputable lenders in the Bay Area that will do a 30-year fixed conventional mortgage on a condo with less than 51% complex occupancy. How does anyone buy units in new complexes with such strict lending requirements? Cash-only is not an option for us, but we do have 20% downpayment.
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AnnaKeefe
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AnnaKeefe
Posts: 1
Registered: ‎11-23-2009
Re: Loans to buy condo with less than 51% occupancy?

‎11-23-2009 08:36 AM

Hello,

 

I know your frustrations on this matter as my client faced the same situation with a new Toll Brothers condo.  We went throught "Patelco Credit Union" and got the loan done.  Give it a try, they worked on two of my clients with same situations.

 

Best,

Anna Keefe

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Redfin Open Book Certified
LoansbyJW
Posts: 3,052
Registered: ‎04-30-2009
Re: Loans to buy condo with less than 51% occupancy?

‎11-23-2009 09:56 AM

Most builders have pre-arranged financing through their "preferred lender" to originate, close, and then shelve loans made in their currently undersold projects. I'd still suggest giving the in house finance company a try.

 

Thanks for reading,

 

LoansbyJW

John Wheaton NMLS 653018 | Redfin Open Book Recommended Lender
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amebuyer
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amebuyer
Posts: 2
Registered: ‎11-21-2009
Re: Loans to buy condo with less than 51% occupancy?

‎11-23-2009 10:01 AM

There is a "preferred lender," but we did some research into them, and we don't want to work with them. We don't believe they're reputable or have secure networks for transmitting our financial information to them, and the rates they're offering are quite a bit higher than other quotes we've gotten from larger lenders.
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Redfin Open Book Certified
LoansbyJW
Posts: 3,052
Registered: ‎04-30-2009
Re: Loans to buy condo with less than 51% occupancy?

‎11-23-2009 01:48 PM

If they are a Mortgage Banker or a Direct Lender they can fund their own loans and thus retain them as sales increase to the point they can re-sell the loan. If they are a broker, you'd have to get something from the bank thats funding the loans to have enough assurance that you can close with them. As for their trustworthyness, I've seen quite a few spitballs thrown at BofA and Wells, but in each organization there are dirtbags as there also are as many angels who work for them. Perhaps your data is based on a individual's performance. If it's the entire company, then staying away is prudent.

 

Regarding the rates, although they may be higher than market you are paying for the benefit of closing. If this is the right property for you, closing take precedence over the rate you are paying. That rate can be refinanced eventually. You can't refinance what you do not own.

 

Thanks for reading,

 

LoansbyJW

John Wheaton NMLS 653018 | Redfin Open Book Recommended Lender
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