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

Real Estate Agent with eXp Realty of California Silicon Valley Probate, Trust, and Investment Sales B.R.E. 01191194

San Jose Condo Development


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 the buyer make sure your lender gets started on this right away.

And for both parties, understand and accept that this may take longer than expected so plan accordingly.

If you have any questions about buying or selling condos in the Silicon Valley please feel free to contact me.


Marcy Moyer

Keller Williams Realty




D.R.E. 01191194

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Marcy Moyer eXp Realty of California  Specializing in Probate and Trust Sales, and Rental Investment Properties



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