Refinancing a condo in a complex with less 50% owner occupied units.
A couple months ago, I was approved for a HARP loan for a condo. It is considered an investment property, has a value of 119k and the current loan is 140, so the LTV is about 118%. I was approved by aimloan and everything was ready to close until they pulled the HOA questionnaire and saw that over 50% of units were renters. That sunk the deal despite my excellent credit and approval for the HARP program. I now know that this is a huge barrier for condo owners and have even been told by credit unions that they would not be able to help. The condo is located in Murrieta, ca (riverside county), just north of San Diego. Are there any suggestions for where to go to refinance? Appreciate the help. by usmann_920_298 from Riverside, California. Oct 3rd 2011
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
Unfortunately that is a Fannie / Freddie guideline, and there is no way around it... because your 18% negative, there is no other option unless somewhere along the way, Fannie / Freddie changes those guidelines, however don't hold your breath... Condo's are usually the first to depreciate in a declining market, and they are the last to appreciate in rising market... Those guidelines are in place to protect the investor (lender), and the term "There goes the neighborhood" speaks directly to condo complexes.. here in the Phoenix area, there have been many Condo's that have been converted to apartments for this very reason... Probably not the answer you wanted to hear, but none the less, it's the truth... WilliamAcres.com
Rudi Hofmann (CaPortfolioLoans)
#281 ranked lender in California - 380 contributions
If this was a normal purchase with 20% down I could help you. Unfortunately you are in a negative equity position. To receive a HARP loan the property must meet their guidelines. With the current condo projects occupancy issue I don't see any viable options for you in regard to refinancing. .... Happy funding, Rudi
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