If you are working on a condo transaction, it would be beneficial to find out the owner-occupancy ratio as soon as possible. For conventional loan transactions involving less than 20% down payment where mortgage insurance is required, 60% owner-occupancy at minimum is generally required.
FHA loan transactions requires the condo to be FHA approved AND have 51% owner-occupancy.
VA loan transactions requires the condo to be VA approved, however there are no owner-occupancy ratio requirement.
Thinking about getting a VA or FHA loan?
A few things to think about before you put in an offer:
Information regarding tax incentives can help your buyers make a more informed rent vs. buy decision. At this time, property tax, mortgage insurance (MI) and interest and points paid on a home loan are tax deductible.
For example a $350,000 owner occupied condominium will generate a total monthly housing cost of $2,800 per month including maintenance fee, property tax and mortgage insurance.
By deducting interest paid, MI and property tax costs, the monthly payment after tax write offs is $2,197 per month, a reduction of $603 per month in total monthly payment.
In addition the client will be building equity at a rate of $317 dollar per month.
This tax scenario will differ based on each owner's unique tax situation and they should consult with their tax professional.
Underwriter at your hands. I have underwriting approval authority which will provide a smoother transaction and upfront conditions.
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2009 ActiveRain Corp. All Rights Reserved
