Harp Re-financing On Fourplex Issue

MikeBones

LoanSafe Member
Jul 3, 2012
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0
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I currently have a Wells Fargo mortgage on a fourplex (built around 1970s), which is located in Orange County, CA.

Originally in 1970's, an apartment complex subdivided its 36 buildings and sold off each building one by one. Each building has 4 units, townhouse style. Buyers of each building have one title. However, title describes the building as "condos." The building is part of an association and the common areas is only outside the building such as sidewalk and grass.

So currently, I'm attempting to refinance it through HARP. It's going through underwriting and an appraisal report has been done. Wells Fargo rejected the refi because the fourplex is zoned as a condo. They say it is considered a "Multi-dwelling unit condominiums," which is ineligible for financing, regardless for a new conventional loan or HARP refi.

Can anyone shed some light on this? Was it titled incorrectly? Is there anything I can do or any documents I can provide to change Wells Fargo mind? Is this a new policy? because it was approved for a refinance 10 years ago with Wells Fargo.
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
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San Diego, California
www.loansreduced.com
Hi MikeBones,
This is definitely a new scenario for me (I would like to say I've run across everything but that's next to impossible in this industry). I'm going to send an e-mail to our underwriting department and get an answer for you. I would hate to give you the wrong advice, give me at least until tomorrow to get that for you.
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,111
182
63
San Diego, California
www.loansreduced.com
Hi Mike,
My underwriting department came back to me and gave me this response:

"Generally speaking, multi-dwelling unit condos are considered ineligible in the agency world. However, this may be something that could be considered under the Non-Agency Program Non warrantable Condo. We would have to see, title and all of the legal documents on the project to see if this is something that can be done. We would have the documents reviewed/analyzed by our Project Approval Team."

From what I can see we may be able to fit you into a program that can make this work. Feel free to give me a call and we can go over more detailed information.