Refinance Problem
My bank is rejecting me for a refi because out of 55% shareholder owned apartments there are only 37% shareholder residents. They are sending the loan to Fanny Mae to see if they will approve the loan (at a cost to me). My credit is excellent and all other info is perfect. Here is the…
My bank is rejecting me for a refi because out of 55% shareholder owned apartments there are only 37% shareholder residents. They are sending the loan to Fanny Mae to see if they will approve the loan (at a cost to me). My credit is excellent and all other info is perfect. Here is the catcher — a neighbor just sold her apartment and the buyers got a loan that was just purchased by Fanny Mae. Does this mean that Fanny Mae will “approve” of my loan or do you think they will reject it. I can’t get a hold of the bank form from my neighbor’s sale — the form the management company fills out for the bank outlining ownership % (old management company that is sponsor owned –they burn them!) so I don’t know if the other bank got an honest story of our ownership percentages.
Anyone have experience with this? Can I push my bank to push Fanny Mae because someone in the building was approved?
Any advise would be appreciated. And, I know we need a sublet policy, but we are loosing this fight right now. So don’t need to go there!
So you are saying that your coop is only 55% sold (I guess the sponsor owns the other 45%) and only 33% of the total project is owner occupied? Sounds like they are applying for a Fannie Mae waiver, are they charging you $250 to go for the waiver? I’ll be honest, it’s going to be difficult to obtain an waiver with only 33% owner occupants in a coop. You may have better luck with a portfolio lender that doesn’t sell to Fannie Mae, their rates are either slightly higher or Adjustable though.
I would continue to go for the waiver as it will ultimately yield you the lowest rate and most favorable terms.
Adam Dahill
adahill@wcslending.com
Good Luck!!
I’m treasurer of our condo, I’ve received several calls from brokers asking whether we intend to comply with Fannie Mae’s requirements to put 10% of budgeted income into a reserve account and maintain at least 75% owner occupation. We do intend to comply but haven’t yet, but because we intend to comply Fannie Mae have given exemptions on a case by case basis, although at least one owner had to get a non-conforming mortgage at a higher interest rate because Fannie Mae would not give an exemption.
Thank you — I will try anything at this point. My bank is Amalgamated so few people have contacts there — but a call is a simple thing to do!
Annie, I can’t answer your question, but I was in a similar situation where we had excellent credit but couldn’t get the loan because it was a 4 unit coop and no one wanted to lend into it due to over exposure (this was 2 years ago when everything hit the fan). My lawyer recommended a great mortgage broker who I called and with just days to go got Citi to make the mortgage. He seems to have great connections and has come through for us a few times. It might not hurt to give him, or other brokers a call, to see what can be done. Just a thought. Good luck, I know it sucks…
Eugene T. Lee
Apple Mortgage Corp.
19 West 44th Street, Suite 1514
New York, NY 10036
Direct: (212) 278-8253
elee@applemortgagecorp.com