I live in a four unit condo building. I have lived here for 14 years and 2 years
ago purchased a larger second unit which is now my residence. My initial condo unit is
now rented as is one of the other units in the condo association building.
The fourth unit in the
building has recently gone under contract and it has come to light that with the
changed freddie mac / fanniemae laws, the loan for the potential buyer is challenged on
two fronts.
The first is that 1 entity owns 50% of the building and the second
is that 50% of the building is now rented. If I understand correctly lenders
will no longer lend given this scenario. It has been suggested to me that I file
a Quitclaim deed on one of my units which I fear may have negative implications for
me and it has also been suggested that there may be a way around this in the
small world of non-conforming loans.
I have consulted lawyers, mortgage brokers,
real estate professionals and my accountant and I don't yet have a firm answer.
Is there a known way around this? Is there any kind of exception for buildings
with less than 20 units as these loan laws/rules are clearly problematic? Thank you.
Answers (8)
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