The HARP Deal 2.0 – Condo Owner Occupancy Ratio, Does It Matter?

The HARP Deal 2.0 – We often hear the term “owner occupancy ratio” which refers to the percentage of condominium owners that actually occupy their units in a condo project.  The idea is that the lower the owner occupancy ratio, the greater the chance of a condo project going under

Why?  Because when hit with a financial hardship, a homeowner is more likely to stop paying the mortgage on a property in which they do not live vs. good ol’ Home Sweet Home.

As I have stated in a previous post, Less Than 51% Owner Occupancy? OK For Conventional Loans, Fannie and Freddie do not care about the owner occupany ratio IF the home is a Principal Residence or a Second Home.  The same goes for the HARP Deal 2.0 if the property is a Fannie Mae owned loan.  Freddie Mac wants a minimum 51% owner-occupancy ratios for the HARP Deal 2.0.  Mortgage insurance companies (PMI) have their own overlays, anywhere from a 51% to 75% owner occupancy requirement.

The HARP Deal 2.0 does follow Fannie/Freddie guidelines for Investor owned condos, i.e., the owner occupancy ratio must be at least 51%.

California property owners interested in the HARP Deal 2.0, contact Jocko Feehan with AmeriFirst Financial today by calling (760) 212-2268 or inquire online at: www.TheHARPDeal.AmeriFirst.Us


About Kevin Kueneke

I am a Sr. Loan Officer with The Lending Company in San Diego, California. The HARP Deal is a very important part of the housing recovery, and I want to help you take advantage of this great program. View all posts by Kevin Kueneke

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