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What are my pros and cons having a harp loan condo and my building gets converted in rentals?

In chicago single mom not wanting to saleAdditional details of your question here by jeanniferhernande... from Chicago, Illinois. Mar 7th 2018 Reply


William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,323 contributions

More info needed, but in general, when a condo complex goes from owner occupied to investor owned rentals, then that's a very, very bad thing in relation to your property's value. It really doesn't matter that you have a HARP loan or a traditional conforming loan.. the problem is in the project.. Lenders will not lend if there is over a 50% investor/owner units in a given project.. additional, if any "one" investor owns more than 10% of the units, then it wont quality for conforming financing. In fact, lenders have a 3 to 4 page "Condo Questionnaire" that's needed to determine if the property qualifies for financing.. but the biggest killer is investor/owner penetration over 50%.. If that's the trend.. then you might want to sell now before the values get so low, you end up underwater.. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Mar 9th 2018
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