What options are available to come up with money for a condo?

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I am under contract to buy a condo. First, my bank came and said i was approved for a FHA loan (3% down). No problem. Then about two weeks later when the appraisal came back, i could not get FHA loan because property contain mostly renters. (FHA rules state at least 51% must be owner occupied and it came back 46%).

Well of course i didn’t know this info, (i’m not sure whom to blame me, my Realtor, or finance person at bank).

So then the bank guy said no problem your credit is good (all 700+ scores), you can get a conventional loan just have to pay 5% down. Well PMI (private mortgage insurance) is not available for this condo, so he came back and said i need 10% down. I only have the 5% or $ 2800 that i can come up with. Should i borrow from the bank the rest of the money or just let this deal go. If i let this deal go, I lose $ 500 dollars. (appraisal fee $ 350 and $ 200 for home inspection)

Is there any other ways to get funding for a conventional loan?

Help, I really want to move and this place is a steal at $ 56000, 1035 square feet, 2bd 2bath.

Thanks!

1 Comment
  1. Reply
    Steve D
    May 19, 2011 at 10:03 am

    Ask your banker if he can set up a 90-5-5 loan, which would take your 5% down, add in a second for 5% and a 1st for 90%. If he can’t do it, get a mortgage broker (check the yellow pages) and see if he can shop around for a 95% loan or a 90-5-5.

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