Mortgage Appraisal Query
It appears that CitiBank is flush with taxpayer funds again. I got, via UPS NDA, a letter offering us a refi deal. The deal that intrigues me is 20 years at 4.75%/4.856%. Here’s the rub, the deal is for a single family. For a 2 fam, there’s an extra point (you’d think the prospect of…
It appears that CitiBank is flush with taxpayer funds again. I got, via UPS NDA, a letter offering us a refi deal. The deal that intrigues me is 20 years at 4.75%/4.856%.
Here’s the rub, the deal is for a single family. For a 2 fam, there’s an extra point (you’d think the prospect of a homeowner getting some income would be a good thing, but apparently not).
According to the woman I spoke with, it is up to the appraiser to determine whether this is a one or two family home.
Now, this house walks like a one family and talks like a one family, and anyone who sees it would not think is was a two family. But, the c of o is for a 2 family.
So, my question is, based on the c of o vs. a visual inspection, what are the chances of this house being declared a single family by an appraiser?
Springs, c of o and dept of finance say 2 fam. Finance says “B1-2 FAMILY DWELLING”. c of o from 1956 shows ‘basement storage’, first floor as one family, second floor as one family.
The second floor was its own unit, the first floor was another unit, the basement would not be counted as livable since it doesn’t pass the 50% test.
There are 2 elec meters, one for each floor. There is a provision for a 2nd gas meter but it has been removed as there is no gas needed on the second floor unless we build a kitchen. The gas lines for the kitchen are in a room that is being used as an office, the plumbing is well hidden.
Half of the basement has been renovated as storage, the other half contains the boiler, w/d, etc. There is no bathroom in the basement and it would not pass the 50% above grade.
All the partitions separating the first unit from the second have been removed so yes there is interior access between the units. The first floor is being used as living space (LR, bath, kitch, dining) and the second floor is being used as sleeping ( bath, 2 bedrooms, office).
What do you think?
NYS certified appraiser here.
Do you have a C/O in your possession?
What is the NYC Dept of Finance classification?
What is the zoning?
Is there interior access between the 2 units?
Is one of the units below grade?
Is one of the units on the same level as the boiler?
How many electric and gas meters?
We just had this problem and it cost us a half point on our mortgage. The house has no 2nd entrance, no 2nd kitchen, no C of O on file, but it is listed as a 2 family with the dept of finance and it has 2 gas meters. The appraisal called it a 2 family based on the Dept of finance listing, and the contract called it a 2 family dwelling again because its sole city record deemed it so. The appraisal noted that it had no sign of being a 2 family. However, we closed in 2010 and we were told that because banks are playing by the rules now, they had to finance it as a 2 family. Apparently they thought if we had closed it in 2009 we would have had a chance of squeaking it through. We financed through Bank of America. Good luck…
A visual inspection will reveal your house to be a one family, Denton. They also look at the meters in addition to stoves. But I have no idea if the lenders scrutinize the CofO. They probably do. This is a question for Adam Dahill.
thanks, the room that is the kitchen for the 2nd family is being used as an office, the plumbing is in the wall and hidden away.
that hide-the-stove trick didn’t work for us getting a 3 family appraised as a 2-family. It depends who you get. But NYC is really confusing in this regard: 1905 building so there’s no C of O, very clearly built as a 1 family, used in recent years as a 3 family, now being restored DIY to a 1 family again. But the extra kitchens and tax status cost us a point on the mortgage. Lame.
I recently did a refi with Citi. C of O says 2 family. Was previously financed as single family (without us taking any steps to hide the 2nd kithen). Mortgage broker recommended removing the 2nd stove for the appraisal (apparently the sink and fridge is ok) to avoid the possibly higher costs. We moved the stove to a closet the night before the appraisal & moved it back right after. Appraiser report described it as a one family house and the refi went through fine.
check hpd you might get lucky with an icard
Denton, what does the City Dept. of Finance list the house as– 1 family or 2?
I think your bank is going to want something beyond an appraiser’s opinion to confirm the status. C of O says 2, so your best hope is Finance.
We had a similar situation: one Dept. said 2 family + store, the other said 2 family. Can you guess which we used to secure the mortgage?
Good luck!