Condos: Owner Occ Ratios; Litigation OK?

We are repeating a few Condo guidelines again b/c we get asked so often.

Owner Occupancy Ratios for Condos are irrelevant if a borrower is an owner-occupant. The condo complex can have 20% owner occupancy rate, for example.

This is the same case for borrowers seeking FHA financing; if the complex is FHA approved, the owner-occupancy ratio is irrelevant.

Investors must have an owner occupancy ratio of over 50%.

Litigation (involving an HOA) is sometimes OK if it is minor and if it does not involve the building the subject unit is in. We are able to get “litigation exceptions” from our lending sources.

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646