What are the requirements for securing a loan for an investment condo?

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I’m looking to buy a condo as an investment property and one thing I’m running into is the owner occupancy rate being too low in some of the communities. The current bank I have my mortgage with (i have just one home now with loan in good standing) requires a 90% owner occupancy rate for a conforming loan and 75% for an FHA loan. The properties I would like to consider are 60% and below. My questions are as follows:

1. Are there any banks that approve loans with owner occupancy < 60%? 2. What if I rent out my current home and move into the condo that I am to buy? I would be an owner occupying it, therefore would I be able to obtain a regular loan for it? 3. Does the owner occupancy rule apply to all sorts of sales - conventional/regular as well as short sales and foreclosures? Thanks.

1 Comment
  1. Reply
    February 20, 2011 at 1:56 pm

    Condos are bad investments and HOA fees can put you in the negative very quickly. What you are suggesting is on the verge of fraud, so think long and hard about the risk.

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