Refinancing & DOB Sign-off
Anybody know if it’s possible to refinance while waiting for final signoff from the DOB? Electrical and plumbing have been signed off and construction ended a year ago. Adam Dahill?
Anybody know if it’s possible to refinance while waiting for final signoff from the DOB? Electrical and plumbing have been signed off and construction ended a year ago. Adam Dahill?
so sorry juno106….i worked with banks directly and bought and refinanced 8/08 and 7/09.
Hey, you can probably get away and close with it, but any honest broker isn’t going to stick his/her neck out there and say it’s not an issue just for the outside chance that it does become an issue and said broker is now the “bad guy” that told you that you could close with an open permit. When I was a direct lender/correspondent banker we closed loans with open permits for small minor items and they most often held money in escrow until that permit was closed. It’s a case by case situation. If you have an open permit for a major issue such as a deck, extension, etc I can see it being a BIG issue.
GowanusGus Did you work directly with the banks or use a broker? All the brokers seem to say no. Was this recently or awhile ago. I would appreciate any info.
Same situation..everyone kept warning me it was going to be an issue…but it wasn’t…chase, wells didn’t care.
sorry for spelling and grammar errors. They really need a spell check on this thing. 🙂
If you are asking is you can close with an open permit than the answer is most likely no. Some local or regional lenders may let you close with them holding escrow but the vast majority including the big banks will have an issue with it. It really comes down to the lender and bank attorney. They used to not care so much but the times they are a changing.
whoops was reading two messages at once and got them crossed. Well the advice is for Juno106, and good luck with your project.
By the way it’s not what you asked, but an Alt2 permit should be signed off prior to the actual sale of a property. That wouldn’t be coming from a bank or any aspect of financing, but usually a buyer’s lawyer would object to any unresolved permits or violations as a matter of course. Well, if they are on top of things.
Hi Adam
If it’s a renovation not having to do with change of occupancy (called an Alt2) there wouldn’t be an issue.
But if the final signoff is for a renovation that changes the certificate of occupancy for the building (Alt1), it’s unlikely a bank would refinance prior to the signoff.
Hey thanks again for your advice on loans the other day, Adam.
-Aaron