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So i started my home purchase in october and made an offer for a condo and was in the process of getting a loan. i started with chase, and upon further examination, chase refused the loan on account of the building failing the fha requirement of not having 10% of capital in reserve. i notified both the seller's broker and my attorney and raised my concern. they said they were aware of this, and it was fine since the banks have been given waivers before and they said to go to bank of america. i talked to the bank of america mortgage lender, and he repeatly stated that it was fine and not an issue, and that he just closed a placed with no issue.
Fast forward to today, a week before i preparing to close after spending almost $1000 on processing fees for the HOA application and mortgage qualification to be told that there is now an issue with the approval. during this time, i been in constant contact with BofA and they kept saying that every thing was fine with my loan. so no i do not know what to do. BofA basically screwed me over with their guarantee and i would like to know what my options are.
I was putting just under 30% as down, had excellent credit score of over 775, and was approve for an interest rate of under 3.5%. also a dti of under 30%.
If you send me an email, I'll send you the name of a mortgage broker who might be able to get you financing. You may have to pay a higher interest rate because of the status of the building. email@example.com.
I was in a very similar situation earlier this falll. After 60 days of pain with PNC they denied the condo due to high sponsorship involvement. All the while being told everything was fine. I ended up going with TD Bank. They were unbelievably buttoned up. I closed in 30days. Joe Leffe was my contact. Google his name to get his info.
I was in a similar situation with my condo refi. In order to get a refi from my mortgage company, they specified 80% of the units had to be owner occupied, as opposed to rented out. I'm pretty sure half my condo building is rented out. Fortunately my management company had no problems fudging the documents to state that our condo building was 90% owner occupied and I was able to refi.
I'm outgrowing my condo, and will likely buy a house in suburubs. The whole NYC condo/coop thing is a pain in the ass to me. At least I can charge obscene rent for my prime brooklyn apartmet.
condobuyer - not sure why Chase denied it based on not meeting the 10% reserve requirement for FHA when you were putting 30% down. You can feel free to email if you want to discuss further. firstname.lastname@example.org
I can speak from experience that TD bank is probably your best bet in this situation.
Mortgage Broker here,
Feel free to discuss:
E.S. Funding Co.
Try Hudson Community Bank; Apple Bank & Flagstar.
Also call Tony Jao @ Sterling 212-575-7046.
......my management company had no problems fudging the documents to state that our condo building was 90% owner occupied
given the troubles of the bubble real estate market due to fraudulent practices on both sides of the equation, it is quite amazing to hear that it still persists. Pencap, do you have any concerns of personal liability if the bank finds out that you did an end run around the bank's requirements?
apt23, dont you think your management company committing mortgage fraud has something to do with the "fraudulent practices" in your equation?
I would love to see a managing agent taken to task for committing mortgage fraud!
oops, I can read, and I see apt23 was making a similar comment as me - I read that wrong. Regardless, I guess the worst than can happen is that the bank could call the loan.