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I keep getting rejected for mortgage refinancing of my primary residence.

I own a condo in a three unit building where the other two units are owned by one person who is using them as rental property. The reason for my property refinancing rejection is always based on the fact that more than 50% of the units are owned by one person. Is there any way around this? I would greatly appreciate a piece of advice. 
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November 01 2011 - Belmont
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Answers (9)

Hi,
Your loan doesn't meet secondary market guidelines for this reason.  As others have mentioned, you need to try a portfolio lender or community bank.  If your property is in Massachusetts, then I can try to help.  Please contact me directly, if you'd like.  Thank you. 
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November 21 2011
Rich, I only originate loans in California. Thanks.

Happy funding, Rudi
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November 02 2011
Sounds like you should talk to Rudi and see what he can do,  you can not do an agency loan.
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November 02 2011
David, in CA I can go up to 80% LTV to $2M with this scenario. To tell someone they are limited to 70% LTV is a disservice in my opinion. I don't know, nor do you, what he may find when he starts calling around in MA.

Happy funding, Rudi
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November 02 2011

Hey Rudi, the guideline I referenced is not specific to NJ properties. I can't imagine how your sarcasm can be viewed as helping anyone.

I am contributing on this web-site for the purpose of providing assistance. Your disparaging comments undermine your purported professionalism

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November 02 2011
I'm amazed that David, a MLO in NJ, knows the LTV requirements of Portfolio Lenders in MA. He must have a great crystal ball.

Happy funding, Rudi
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November 02 2011

Good afternoon,

You will need access to a portfolio program that will take into account all factors of your scenario.  Depending on the details, you may be eligible for a refinance as long as the loan amount does not exceed 70% of the property's value.

Best Regards,

David

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November 02 2011
In California we have portfolio lenders that do not care about occupancy or the HOA budget. I suggest you start calling small banks and credit unions in your area. Finding a broker that is approved with a lender that offers this will be more remote.

Happy funding, Rudi
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November 02 2011
Profile picture for shapiroamg

You will find it difficult with this. Most lenders will want at least 2 of the 3 units owner occupied. Where the other 2 units are owned by one person, if that person has any financial difficulty, your association could be in trouble. hypothetically if that owner was in trouble, are you prepared to pay all the maintenance and insurance costs?

So this is why you are having an issue. I do have one lender that has a non-warrantable condo program. Andrew Adams at Salem Five might be a good resource. You could also call Belmont Savings and see if they can do anything as they might not sell all their loans to the secondary market.

Edit: I just checked and my non-warrantable program will not allow 2-3 unit associations. Further no unit owner can have more than a 40% interest in the association (I assume the other unit owner is at 66%).

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November 02 2011
 
Related Questions
I keep getting rejected for mortgage refinancing of my primary residence.
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Latest answer by Elaine Manfredi
November 21 2011 | 9 answers
  • Asked by vadimwoolf
  • In Refinance
  • November 01 2011
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