We are frequently asked about required Owner Occupancy Ratios for Condo Complexes. Here are some general guidelines:
Owner Occupied Financing with 20% or more down: Owner Occ. Ratio is irrelevant. Owner Occ. Ratio can be 10%.
Owner Occupied Financing with less than 20% down: Owner Occ Ratio must be 50% or more, depending on PMI requirements.
Investment Property Financing: Owner Occ. must be 50% or more.
FHA requires an owner occupancy ratio of over 50%, but if the Condo Complex is FHA approved, such an owner occupancy ratio is assumed.
Litigation involving the HOA does not always kill deals. It must now always be disclosed (we used to be able to dance around it), but whether or not it will preclude financing depends on the nature of the litigation.
Call Jay Voorhees at (925) 855-4491
Real Estate Broker, CA Bureau of Real Estate, BRE# 01524255, NMLS# 335646