Developer of my condo owns just over 25% of my building. I am worried that will make it hard to sell my unit

Read the Story

Show Top Comments

I think it can cause issues for FHA loans because they require a specific ratio of owner-occupied units. The question is, aside from the developer, how many other units are rentals?


How long do you think it will take for the remainder of the units to sell? Presumably the developer would like their money sooner rather than later.


Usually it comes to how many of the units are rentals. The developer rents 25% of the units. I assume that the developer is not the only person renting out units in your condo. If too many units (usually ~50%) are rental, then buyers have to get a “non-conforming” mortgage. For the same reasons that Fannie and Freddie won’t buy these mortgages, banks usually charge a premium on the interest in these mortgages. Many condo boards put in rules and caps on renting out units. If your Condo does not have these type of rules in place, you may want to get involved on the board. Putting these rules in place will protect your property value.


Have you crossposted to /r/HOA yet? You might end up with a lot of followup questions and there are many actual experts posting there.


I know lenders in Michigan can do non warrantable condo loans for as low as 5% down, ive closed 6 deals on condos like these in the last 18 months. When you go to re sale let it be known, not many agents know of this, and simply won’t show a non warrantable condo because of it.