Banks wont give mortgages to this building...what to do?
Hoping for some advice for this unfortunate situation that just came up. We’re in contract on a condo, but just found out from the mortgage broker that because the original owner of the building still owns a high percent of the units after it went condo, most of the major banks will not take the…
Hoping for some advice for this unfortunate situation that just came up. We’re in contract on a condo, but just found out from the mortgage broker that because the original owner of the building still owns a high percent of the units after it went condo, most of the major banks will not take the risk of issuing mortgages for any units being sold. Has anyone experienced this, and if so what are the alternative channels to go through? Are there smaller or nontraditional lenders that would be more likely to lend?
I CAN DO THIS LOAN WITHOUT A CONDO REVIEW IF YOU ARE PUTTING DOWN 25%.
Vanessa Thatcher
ATLANTIC HOME CAPITAL
Tel: 631-687-3510 x106
EFax: 631-918-5222
Cell: 631-672-4113
http://www.atlantichomecapital.com
You can also catch me at :
Montauk:
http://www.montauk-online.com/?s=Real+Estate/Mortgages
Brooklyn:
http://bstoner.wpengine.com/directory/Mortgage_Brokers
http://bk.ly/tUo
There are lenders that specialize in new condos. I have some lenders that will be the first to close in the building and more that will do the loan once the building hits 33% sold.
Thanks all. Indeed we dont want to lose this apartment despite the contingency, and surprisingly even though we’re putting 50% down, it doesnt really matter. Jesse, I’ll give Eugene a call if our broker isnt able to find a lender.
I had a similar issue, and the trick is to find a broker who can pull from lenders who specialize in mortgages for buildings that Chase, etc shun. Of course you end up paying a higher rate, but if it’s worth it to you it’s not a bad idea as you can usually refi soon after (like I did). Give Eugene at Apple Mortgage a call at 917 796 1160 – he was a great help. Pls tell him Jesse from Park Slope gave you his info if you do. Good luck.
Assuming you have a mortgage contingency you have an easy way out of the contract. Fannie raised the minimum from 51% to 70% for loans they’ll buy. Similar question on NYT RE QA …
http://realestateqa.blogs.nytimes.com/2009/02/27/few-borrowing-options-for-some-condo-buyers/
You might a smaller community bank that would keep the loan on its books. If it’s more than 50% sold and you’re putting 50% down and you’re willing to pay a higher rate you could probably find an investor willing to lend.
Possiby – and the best way to find them is to go to a very large, Manhattan-based mortgage broker – whose people will be able to quickly find the portfolio lenders (those who keep their loans rather than selling them to Fannie) who will loan to you, if there are any.