Here is the scenario…I have some buyers who would like to purchase a condo and they would like to buy the condo now and rent it out. In the meantime they will be attempting to sell their home. Once their home sells they would move into the condo. Creative way to buy their next home without having to feel pressured to sell their home right away and potentially for less money than if they had more time right? But is this possible? Condo financing is much more difficulty anyway let alone being non owner occupied.
Can it be done? Yes The 30-year fixed rate of 4.50% has a zero loan fee today for an investment condo purchase with a 25% down payment. The Homeowner Association would need to be reviewed for FNMA financing eligibility. We would need to check with the HO Association because they limit the number of rentals in order to obtain FNMA financing. They may be at their cap percentage and may not allow a unit to be purchased as a rental.