Home Buying in 11204>Question Details

Sbhatta904, Home Buyer in 11204

I am renovating a house which I intend to live in. Do I need to occupy the house in 60 days for the loan to close? I need the loan to finish renova?

Asked by Sbhatta904, 11204 Mon Jan 3, 2011

I have alredy invested a substantial amount to renovate a second house and will require a home loan to finish renovations. Is there a 60 day occupancy rule in NYC. The Mortgage broker wants garuntees that the house will be inhabitable within 60 days.

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How are you renovating that home, if the deed is not yet transferred to you? Are you renovating someone elses home? No bank would close on a purchase of a home that's in the midle of renovation, accept when the bank would knowingly treat the loan as a construction loan. Good luck
Web Reference: http://Www.bankafc.com
1 vote Thank Flag Link Mon Jan 3, 2011
In order to accurately answer your question I need more info on the type of mortgage, etc. I suspect that you're not doing an FHA 203K loan. Mortgage banks generally stipulate in the commitment a time frame in which the house must be habitable after closing or when renovation should be completed. From my experience, that 60 days clause may be negotiable. You should however, check around with a few mortgage brokers to find out more.
0 votes Thank Flag Link Sat Feb 12, 2011
Is your lender requiring c/o's in order to close....consult with your loan officer and ask for clarification on any possible issues not understood.
0 votes Thank Flag Link Mon Jan 3, 2011
Sorry, I missed the fact that this is your second home. Is this correct? In any case a bank would not close until all the plans and permits are signed off, and the proper CO obtained.
Web Reference: http://www.bankafc.com
0 votes Thank Flag Link Mon Jan 3, 2011
You must intend to occupy the subject property if the loan you applied for is an owner - occupied mortgage loan such as an FHA LOAN. If you have applied for investor financing it is not necessary to occupy the subject property. I f this seems to be a simple answer to a complicated question , it is. I would need more details and information to give a more precise answer
0 votes Thank Flag Link Mon Jan 3, 2011
Dear Sbhatta904:

There is no definitive answer to your questions because policy varies from bank to bank. The bank you put in your loan application with will ask you for the information that they need to get the deal done. You may want to shop around and talk to a couple of other banks to see if their policies are more flexible so as to meet your needs.

Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes Thank Flag Link Mon Jan 3, 2011
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