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.