Can I (or anyone) get a mortgage on a house with a driveway and a finished attic that were done without permits?

Asked by etho1416, 10703 Wed Oct 10, 2012

Thinking of buying my late grandfathers house at a huge discount from his estate, doing basic updates, then selling. But I have found out that he finished the attic and put in a driveway 40 years ago without permits. So the upstairs is not on the CO and no survey exists at city hall so nothing with the driveway shown on it. When either I or a future buyer tries to get a mortgage, will the bank even notice these issues? I can afford to sell the house at a discount if buyer have an issue, but if they can't get a mortgage I am in trouble. I could get everything legalized, but would rather just make a quick flip.

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Martina Ryan, Agent, Flushing, NY
Wed Oct 24, 2012
40 years is a long time _ he may have grandfathered it in. Do some research before you make a decision. See what the local municipality requires & speak to a local Mortgage professional.
0 votes
Anna M Brocco, Agent, Williston Park, NY
Wed Oct 10, 2012
Generally a c/o is required when purchasing with a mortgage....
0 votes
Vernise Card…, Agent, New York, NY
Wed Oct 10, 2012
You need a cash buyer. We have plenty!
Contact me at 917-841-1888.

-Vernise Cardillo
Luis Fernandez Sales Team @ Keller Williams Realty
0 votes
Barbara O'Co…, Agent, Yonkers, NY
Wed Oct 10, 2012
In Yonkers it's hard to say without looking at the house and the file. Then, it can also depend on the bank. Give me a call if you would like more specific info. My office is in the 10703 area.

Barbara O'Connell
Licensed Real Estate Salesperson NYS
Margot Bennett, Inc.
0 votes
Nancy Strong, Agent, Armonk, NY
Wed Oct 10, 2012
It is always better to get everything legalized before you sell. It will make the process go much more smoothly and there are contractors who are local and familiar with the process that can assist. If you sell the home, there will be a much longer process without having the c/o's unless someone is paying cash for the property and doesn't care. There are mortgages that are now available at a slightly higher rate, that are renovation mortgages. The appraisers determine the value of the house once renovations (and c/o's are completed) and the mortgage is based on that value. Of course, the buyer has to then have more paperwork, a licensed contractor who gives them the price to get all of the work done and it will take a bit longer to process.
0 votes
Gail Gladsto…, Agent, 11743, NY
Wed Oct 10, 2012
If you find a cash buyer, they may be willing to overlook the no C of O for the right "discount."

If someone is getting a mortgage, the Certificate of Occupancy will be required.

Depending upon where the house is, and because the work was done so long ago, you might look into a Letter in Lieu. Check with your local building departments or speak with an "expediter" to have it completed.
0 votes
Christopher…, Agent, Tarrytown, NY
Wed Oct 10, 2012
Hi depending on the municipality they may consider the driveway pre-existing and won't be an issue. As for the attic, it may be an issue depending on the lender. When they receive the title report and municipality permit search and see a discrepancy that's what raises flags. You have to remember the bank is investing in the home and it's value so they are very careful with this stuff. Your best bet is to speak with a few mortgage professionals...I recommend Christian Babcock from Mortgage Master 914 447 9691.

0 votes
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