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What Happens If You Want to Buy a San Jose Condo With More Than 30% Rentals

 
Buying a condo can be complicated. There are many things a buyer and lender will look at to determine if it is the right place to buy and if the lender feels it is a safe investment.  Some of the considerations for the lender are:
1. How many delinquent HOA dues are outstanding?
2. How many recent foreclosures or short sales?
3. Is all of the needed insurance in place for full replacement?
4. How well funded are the reserves?
5. Is there any outstanding litigation?
6. And now a very important question is what is the percentage of owner occupied to rental units?
 
If you are trying to buy or sell a condo in a development with higher than 30% rental units and the loan is going to be sold to Fannie Mae, then they will want to do a full approval of the HOA before agreeing to make the loan. This will take about 3 weeks after they receive all the HOA documentation, so you will need to be patient.
If you are the seller it is a good idea to have your realtor order the HOA docs as soon as possible and if you are ... more

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