Looking for a lender that can do a 680 score, 50 debt ratio, non-owner 95 LTV, 0x30 mtg history, 3% seller concession in Connecticut. The 95 LTV is going to be the challenge, most lenders want 10% down. Its for a small condo investment. This if full doc. Already put in an offer, pending acceptance.
95% is not a challenge…plenty of lenders for a broker to use.
One question that comes to mind…if the condo is new construction, is it warrantable?
So are you looking for a broker to assist you?
no its not new, built in the 40’s but it was apartments then. Recently converted to condos (its complete) Open to brokers (was a broker at one point myself), but we only have 3% seller concession for closing costs, after our 5% down. Broker would have to be able to take a yield spread on the back, no room for points. Purchase price is low, $78,500 some brokers may not even want to touch something that small. But we may be buying two.
You have several challegens here with the new info presented.
You’re right, many brokers may not want to touch the it because it’s a smaller deal.
Since it is a smaller deal, when you split into a combo loan, the loan amounts may not meet the lender’s minimum loan requirements.
Many of the lenders that could possibly entertain this, will not allow 3% seller consessions, only 2%. This leaves your client in a rough spot since you say there’s no room for a broker to be compensated upfront.
Since there is no room for the broker to be compensated upfront, that doesnt give the broker a fair deal. Especially when you consider that 2% premium may be the max per lender.
You say these aren’t new. The lender is not going to look at the date that the building was constructed, rather the date of conversion. So if they were just converted, are they warrantable…better ask the builder. Some lenders will have special restrictions for condo conversions as well.
Is your client willing to take a prepay? How long do they plan to hold? There may be some nonconforming lenders that would consider this but I have no idea what the terms are…I only specialize with conventional loans.