Portfolio Loan needed in MA condo under contract

I am looking for a portfolio lender and here are the stats of my situation: 

Condo
Haverhill, MA
9 units (1 unit, 8 residential square footage of all units around 800-850)
Good owner occupancy: 6/9
Purchase price: $111,000
Down payment: 5%
Assets: $6k in the bank (AFTER putting down the down payment) 
Credit score over 750
Monthly debts: around $203 (student loan plus $25 credit card)
Income: Self-employed real estate agent $2,781 monthly

Some portfolio lenders are rejecting me because my assets are low....that's because I'm stuck in Boston paying ridiculous rents and I want to OBTAIN an asset. I've also paid back a private student loan of $30k in less than 3 years. I'm a PhD student and a full time real estate agent. I am shocked that it's becoming this difficult to find someone to lend me $105,450 for my first home...that will cost me less monthly than I already pay. 

Specifically for the unit: it is currently a 1 bed and I'm going to turn it into a 2 bed and rent out one of the bedrooms to a friend. Clearly I can afford these payments. 

If anyone has any contacts that would finance this situation I would be greatly appreciative and refer you real estate business outside my coverage area of greater Boston! 

David 
  • April 09 2014 - Haverhill
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Answers (5)

Profile picture for shapiroamg

Basically in that association, only one unit can be delinquent for no more than 30 days past due.

You might be better moving onto something different. Condo fees pay for many things and that 1/3 of the units are behind (even though your buying will bring that down to 2 units) is a real problem for the complex.

The non-warrantable condo programs I have still want little/no delinquencies. It's a large risk factor for any lender to ignore.

  • April 10 2014
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The condo in unwarrantable due to 3 condo fee delinquencies (one is the unit I'm buying so will become current at sale) out of 9 in the building.

That $2,781 monthly income is my 2012 and 2013 income stated on taxes combined divided by 24. 

Not calculating any income based on the potential room for rent within the unit. That's just info to throw out there to let you know the situation. 

10% down is not possible for me at this time. I could do 6-7% down if it helps, but would need another month or two of working to be prepared for 10% down. 

Also I forgot to mention that the condo fee is $208 and yearly taxes are $1,924

Thanks for the feedback!
  • April 10 2014
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Profile picture for shapiroamg

If you are trying to purchase using potential income from renting out a bedroom, that will not work.

For your monthly income, how is that derived? If it is the Realtor income, any lender would need to average this over two years from your tax returns.

I would be happy to discuss and put your loan through our system to see if its possible to do.

  • April 10 2014
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Profile picture for GMerino
Is this condo a warrantable condo? 
  • April 10 2014
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i have a working relationship with a credit union who services loans in that area - they will require 10% down however. if you'd like to contact me please refer to my profile and i'll give you more information. Thanks
  • April 10 2014
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