I’ve read here on several threads and been told my a selling agent that it can be difficult to finance an SRO. Why is that? Is it because banks don’t know how to handle it? Because there are not enough comparables available for appraisal? Because there is some risk that the C of O wouldn’t be converted? Or all of the above. I am considered purchasing an SRO that will be delivered vacant with a cert of non-harassment at closing.


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  1. well i can assist with your change of occupancy (from class ‘B’ to ‘A’). A letter of no harrasment is only 1 piece to the puzzle of changing your CofO. Oh did anyone ask if you even had an existing C. of O. one in the first place? landlords/ owners do all kinds of slick things over the years, and the city cant bother to catch you. so they sit back and say ‘just pay up when you need to change something. The C of O is where they get you to pay all old fines, fix all illegal conditions, and pass all inspections. but i will take a quick look at your address at no charge if you’d like.

  2. Hamequity is spot on. SRO is a major NO NO for mostly every bank out there. Citi does not do these properties unless they are giving you a 203k FHA loan and they will require the c of o being changed. A SRO is a commercial property in essence and anyone that tells you that you can get a straight residential loan without converting it is either lying or they don’t know what they are talking about.

    Rude Awakening.

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