Condo Finance Advice

long story short I have a condo that is being used as my primary residence. it was purchased by my parents while i was in college with the promise i would take it off their hands at some point in the future. Now to give you some background my plan is to live here for no more than 2 more years.. less if possible so i can take adv of low rates and get into a house... At that point i would sale the condo for whatever i can get and call it a learning lesson in bad investments or rent it out and hope at some point i can get something for it...

as most of you know condo financing is very difficult as the majority of condo developments are not eligible for FHA loans... thus making it difficult for people to qualify to take them down. I spoke with a banker today about this issue and he indicated that in the past he has done in house loans on deals like this.. (we are talking about a very small amount of money like under 6 figures.)

essentially what we talked about was a purchase price of somewhere in the neighborhood of $50-60k a rate fixed somewhere in the low 4%'s for 5 years am'd out no more than 15 years. Now here is the kicker the condo "value" is in theory worth more than the loan amount... so what I gathered from him is I would not be required to put anything down and he would basically just carry the equity over from my parents... also he said there would be no bank fees the only closing costs would be the legal work to transfer title... so $1K or so i would assume.

Now i am not really worried about how short term of a loan this will be since I have won't have $ tied up in closing costs...


now I understand the big huge problem with this plan is who knows what rates will do in 5 year but i think its fair to assume they will go up... hopefully in 5 years I either have this place paid off or no longer have my name on the title..



another idea i have considered is to have my dad owner finance it for me... but honestly its not worth the headache in my opinion when we can get 4% money from the bank....


thoughts, hate words, kind words, are all appreciated.