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