The Investor Ratio in Condominiums and Why it Matters

Posted on Monday, May 21st, 2018 at 1:08pm.

If you are in the market for a condominium, one of the important questions to ask BEFORE you decide to write an offer is the current investor ratio in the community. Sometimes referred to as "Non-Owner Occupied", investor-owned condominiums are typically rented out to tenants and thereby considered non owner-occupied.  In most cases, Fannie Mae guidelines require at least 50% of condominium units be owner-occupied in order to provide traditional financing.  Exceptions can be made but the approval process can be a lengthy process and potentially delay your settlement. 

The best advice for a potential condominium purchaser is to inquire about the investor ratio from the listing agent or management company before preparing your offer. In situations where the property has a high investor ratio, you can talk through options with your buyers agent and mortgage professional. 

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