goblu's question: "My bank has approved me for a 2nd home condo in the Phoenix area. However, they say they are now concerned with the owner occupied/investor owned ratio in the area and say that the Fannie Mae will not approve. What's the deal here?"
Your situation, goblu, is quite common in communities where the board/overseeing group allows the number of rented units to overwhelm the number of owner-occupied units such that a percentage which is unacceptable to federal backers of mortgage loans and refinances is created.
This number changes over time, usually hovering around approximately 30% to 49% of the total number of units which can be rented.
Your option, if you want to purchase this unit in an overly rental-populated community, is to purchase it with cash. And unless the situation is corrected by the board/overseeing group over time, your only option when you sell may be that you can only sell to a 100% cash buyer.
A better choice may be to find a community with a rental cap which has not been exceeded, where you can purchase a unit and qualify for the loan you want without worrying about any of the mess described above. It's really up to you.
Hope this helps
Best of luck, my friend.
YESSS thank you so much. This confirms what our financial advisor said. again, many thnx!!
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