This is a pretty specific question, but wondering if anyone has had recent experience with this type of situation.
Background: Own a coop in Queens with a pandemic interest rate on the mortgage (3.85%) lived here for 6 years as a primary residence. My lovely neighbors whom we share a living room wall with will be putting their apartment up for sale soon, so we are doing diligence on how possible the dream combined apartment would be.
Details: Our building is fine with this and the shares would remain separate. So technically we can have two mortgages (yay!), but after talking with a broker recently she said that they used to do combo loans where both apartments would be considered primary residences, but in the past few years underwriters have been changing that after the bank broker ok'ed it, and saying you can't double dip – the first one is primary and the second is an investment property (with the higher investment property rate). Her recent examples were BoA and Wells Fargo.
Question: Does anyone know of a bank with an underwriter that would still do a combination loan – which I understand to mean that we can keep two mortgages (the existing at the lower rate plus the new one at the higher rate) but both would be considered our primary residence?
Please be kind, I'm trying my best to understand this complicated situation myself!
Posted by Merky23
1 Comment
That’s a tough spot with the underwriters getting stricter lately. Have you tried smaller local banks or credit unions? They sometimes have more flexibility with unique situations like coop combinations since they keep loans in-house instead of selling them off. Worth a shot before you get stuck with investment property rates on what’s obviously still gonna be your primary