Just Approved: Extra effort nets condo purchase

First mortgage $404,000; simultaneous second mortgage $49,995.

First mortgage 30-year fixed 3.875 percent with no points; second mortgage 30-year home equity line of credit 5.25 percent.

Holmgren secured a fully underwritten preapproval enabling the client to make an offer without a loan contingency and with a short closing period.

Soon the client found an ideal condo unit and emerged as the winning bidder.

Complexity surfaced when the homeowners association documentation revealed the project supposedly contained live/work units that, if actually configured as outlined in the project documents, would make the project ineligible for Fannie Mae financing.

While Holmgren has loan options available for condo projects that don’t meet mortgage agency guidelines, the terms are not as attractive and frequently require at least 20 percent down.

Through the listing agent, Holmgren contacted the project developer to get more details on the units in question.

Holmgren was able to secure documentation from the City of Richmond that showed that the project was characterized in a way that fully complied with Fannie Mae requirements, documentation that the project homeowners association had been unable to provide.