buying a condo in a new development that's less than 70% sold

Profile picture for kathleenkjones
i'm considering buying a condo in a new building, but am having trouble finding a lender since the development is less than 70% sold; isn't this a bit of a chicken/egg scenario, wherein it is impossible to get to the 70% if the loan options are so limited?  is there a law that is governing this policy, or is the lender's prerogative?
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June 01 2009 - South Boston
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Profile picture for jazzolino
Usually, you will need a portfolio loan from the bank who has sponsored the developement for the builder. Ask the builder which bank has financed the project.  This is the bank that will give you the loan.
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January 14 2010
Profile picture for PawsitiveRealEstate

Well , we have been having an issue with a short sale in our area located in a newer condo development with almost the same issues.....which actually involved the HOA not providing condo certs to the lenders.
It not only has affected the sales but for homeowners within the complex to obtain refinancing.  Apparently the HOA is relenting but making all parties sign an affidavit to the fact that the HOA will not take responsibility for any of the info provided. In other words will not guarantee the certification. Buyer has to come up with at least 25% down. Will be interesting to see if this pans out.The builder still holds a percentage of the homes and owner occupancy I believe is somewhere between 50 and 60%.......more roadblocks just keep propping up...
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June 09 2009
Profile picture for Globereporter
This is a new requirement issued by Fannie Mae and Freddie Mac. See Boston Globe story at http://www.boston.com/business/personalfinance/articles/2009/05/23/new_rules_on_condo_loans_hindering_some_buyers/

Jenifer McKim
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June 02 2009
Profile picture for real estate mike
I'm sorry but couldn't you just ask the around 30% owners, who did their loans? I would try that.
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June 01 2009
 

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Questionbuying a condo in a new development that's less than 70% sold
  • Latest answer by Joe Azzolino
  • January 14 2010
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