Condos MISUNDERESTIMATED!?

By
Mortgage and Lending NMLS #94045

Condominiums seem to be suffering a lack of investor interest to say the least these days! I know several of owner/developers who have done the right thing by their prospective buyers by building new or sensitively converting older buildings into very solid investments for first time owners and investors.

Meanwhile: Lenders who will fund 'unwarrantable condos' are scarce as hen's teeth. I have several who are OK with Jumbo loans on condos for excellent borrowers (high net worth individuals). I am talking about our local emerging market: teeming with first time buyers, people scaling down, retirees and college students who would really benefit from kiddie condo loans (essentially loans to parents for 4-6 years). Presently, we are stuck with the 'Spot FHA Approval' as the baseline. If the project does not have HUD or FNMA approval ie 51% sold, an HOA in place and tenancy is largely investors, we are stuck with hard money loans, which defeats the purpose of 'affordable' housing. 95% financing would be a real boon or this audience is otherwise doomed to seek single family residences which may not meet their needs and budget. Believe it or not we DO have rural condo loans on offer... but the bulk of our condos are within the city limits of Bellingham and do not qualify for USRDA.

I would dearly love to speak with individuals or investors interested in funding pirvate loans for very deserving folks in the $150-250K range.

We have many great projects in our Pacific NW Region including some mixed use urban and rural condos that are slightly left of center and so timely for the needs of today's buyers.

Thanks for your support!

 Give your buyers this Credit Link and we will discuss their tri-merge lender report with them. Our firm is licensed in WA, Oregon and Idaho.

Washington Licenses: 510-LO-31434  510-MB-24707-50145

Posted by

 

 

SUSAN TEMPLETON IS A LICENSED LOAN ADVISER IN WASHINGTON

NMLS# 94045

                 

 

Interest rates and products are subject to change without notice and may or may not be available at the time of loan commitment or lock-in. Borrowers must qualify at closing for all benefits. Loannetter is a private brand owned and copyrighted by Susan Templeton.

 

 © 2005-2015 susan templeton copyright

 

close

Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Christine Farkas 02/14/2009 05:58 AM
Topic:
ActiveRain Community
Location:
Washington
Groups:
Built Green Certified Agents
Investors
Mortgages
Posts to Localism
Tags:
condos
commercial investors
private lending
kiddie condos

Spam prevention
Show All Comments
Rainmaker
262,842
Paula Swayne
Dunnigan, Realtors, Sacramento (916) 425-9715 - Sacramento, CA
Realtor-Land Park, East Sac & Curtis Park -Dunniga

Hi Susan!
When I have investors ask me what I feel is the best way to go, I always suggest a condo.  There is no worry about exterior maintenance or landscaping. Neighbors generally watch out for each other.  The only caveat is to be certain that the HOA dues aren't out of line.

Feb 12, 2009 03:21 PM #1
Rainmaker
66,965
Susan Templeton
Bellingham, WA

Hi Paula, Ah a condo aficionado!

Condos are great investments for folks not into the joys of home managership. BUT we have to have a brave few buy the first 51% with their own funds or a few local lenders. YES condos are great investments for folks with cash but that often creates an 'investor/rental' nightmare for the other residents. HOA's are the local governance like any small town. Laws are on the books for those factors... so hopefully the original construction is of sufficiently high standard to keep costs down.

Feb 12, 2009 03:31 PM #2
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
66,965

Susan Templeton

Ask me a question
*
*
*
*

Additional Information