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Question HOA Owner Occ %’s; HOA Not Always Right

We have an investor buying a condo. Condo complexes need to be over 50% owner occupied for “investor” financing. Owner occupancy ratios are irrelevant for owner-occupied financing.

The HOA initially told us that the Owner Occupancy ratio was 44% (too low for investor financing). The HOA simply based their estimate on the % non-site addresses of the condo-owners. This analysis is not always accurate, as many owner-occupants have P.O. boxes.

The Realtor for our buyer very astutely contacted the HOA and went over all the addresses, helped the HOA determine the Owner Occupancy ratio is actually 55%, more than high enough for us to garner financing for our investor.

Our point: Please question (in a friendly and professional way) owner occupancy ratios. They are often simply assumed, based on a flawed analysis. Kudos to our Realtor for going the extra mile and saving a deal for herself and her client.


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