Getting Financing for condo w/>25% Sponsor Owned

Many lenders write non-conforming loans, either to hold in their own portfolios or to package for private investors. Wells Fargo, First Republic and Hudson City all play in this space. So do HSBC and Guaranteed Rate, though I'm not sure they would be among my first calls.

I would suggest that you start with lenders who have a history in your target building. (See ACRIS for recent mortgage or UCC activity, depending on whether the property is a condo or a coop.) Prior lending doesn't mean the bank will lend there again, but at least most of the key documentation is probably on file already, which will speed up the application process.

Thanks, Wells has told me no b/c the sponsor owns 55% of the units since the conversion in the 90s.

What is crazy is I got the budgets and they are good.

Oops - you mentioned that it's a condo. So search ACRIS with the appropriate Block number and a Lot number of 0000.

55% is tough. I hope the Sponsor has ceded control of the Board.

How much do you need, and what sort of loan-to-value ratio are you looking at? Also, do you have really, REALLY good credit?

We get that but the sponsor has run the building well and is in the best interest of the trust to keep it kept up. The other owners can sue the trust (ugly I know). I was told the board is composed of owners.

Jumbo and Yes.

The flat "no" from Wells is a bad sign, but there are lots of other fish in the sea. If ACRIS doesn't yield any good leads, I can provide a good contact at First Republic. You can e-mail me by putting my screen name in front of "@gmail.com"

ms123, Curious why you want to buy in a building without lending availability. Are not you concerned about finding a buyer when you sell?

My advice is don't do it. Ask your lawyers how ugly things can get. Whatever "discount" you get you will pay back in aggravation down the line.

The apartment is great and we would live there for at-least 3 years, deal with selling down the line.

Just need to know if anyone has a contact that could get it done.

The sponsor is maintaining the building and selling units as people in them die off, just a slow moving process. If they don't control the board, should not be an issue.

No building with 100+ units is trouble free, look at some of the corrupt Co_Op boards and buildings around the city. Boards and supers skimming off the top.........

Our condo has more than the "approved sponsor ownership". However, each year the Board secures an official "Fannie Mae Approval Letter". (Fannie Mae asks for and reviews specific documents of the Condo to determine whether granting mortgages is "safe".) A copy of the official letter is sent in with mortgage applications. All the major lenders are granting mortgages.

so you are interested in purchasing into a very difficult situation for "at least 3 yrs"? you really like headaches.

if you were to say for "at least 10 yrs", you would hope that the % of ownership would change. 3 yrs won't buy you anything except 2 major heachaches.

why is it a guaranteed headache?

i own another condo in a smaller building all owner occupied and the owners are the worst people to deal with, they do not think rationally

after a couple years, if you can't sell it, you just rent it out.....

if you are ready to have a significant amount of assets tied to an investment that you don't want for a significantly longer period of time then you desire, then there's no problem. most people purchase knowing that they will be able to sell to a qualified buyer for market price within a reasonable timeframe.

Hudson & Apple Bank

Ms123, Curious if you got done? Which bank?