Owner Occupancy Ratios; Appraisal Management Companies – Problems & Solution

Reminder: Owner-occupancy ratios for condos are irrelevant if a buyer plans to occupy the unit; owner-occupancy ratios can be well under 50%. One of the primary reasons we left the broker channel in 2014 was appraisal issues. The wholesale banks forced us to use large appraisal management companies (AMCs), and it was a nightmare. Prior […]Read More

Reminders: 60 Day Rent Back OK; Owner Occupancy Ratio For Condos

A couple quick reminders: 60 Day Rent-Backs are almost always allowed. Owner-occupant buyers must take possession of a property within 60 days, or they will not be allowed to garner superior owner-occupied financing terms. Owner-occupancy ratios in condo complexes are irrelevant if a borrower is buying as an owner occupant; ratios can be well under […]Read More

Owner Occupancy Ratios for Condo Complexes

We are still getting questions about required Owner Occupancy ratios in Condo Complexes. At many of our lenders, if the financing is “Owner Occupied”, the owner-occupancy ratio is irrelevant. Again, Owner Occupied Buyers do not need to worry about Occupancy Ratios in most cases. It is only when the financing is FHA or NON-Owner Occupied […]Read More

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 […]Read More

Condo Owner Occupancy Ratios Re-Visited; 2 to 4 Units – All But One

We had many questions on Monday about Owner Occupancy Ratios and condos, so we want to reiterate this: If a buyer intends to occupy a condo, his financing will not be affected by the owner occupancy ratio. This is the case no matter how low the occupancy ratio might be. The occupancy ratio will not […]Read More