C of O for Home Equity Loan
I recently applied for a HELOC on my legal 2 family renovated and used as a 1 family. On the application I described the house as a one family and told the appraiser (“drive by appraisal”) that it currently had only one kitchen, which it does. The loan was subsequently denied due to “no CofO”….
I recently applied for a HELOC on my legal 2 family renovated and used as a 1 family. On the application I described the house as a one family
and told the appraiser (“drive by appraisal”)
that it currently had only one kitchen, which it does. The loan was subsequently denied due to “no CofO”.
What are my options to avoid a repeat of this situation?
Try to get a letter of no objection from the DOB
@1:14 takes it, the fact that you are using as a 1fam vs 2fam is irrelevant here, they just denied cuz no cofo as is common w older houses.
I recently went thru same thing, was able to convince appraiser (who came in house) that it was a 1fam and that the cofo was a mistake.
Saved me a point as 2fam more than 1fam on a refi.
Go back to the bank again. This shouldn’t be an issue. Problem these days is that they fired anyone with common sense that work at the major lenders. You only deal with people that follow a basic checklist and if something doesn’t fit that list they deny.
Somedays I want to pull my hair out when dealing with these idiots.
as mentioned, first you need to figure out if it was denied because they think there’s a mismatch between c of o and the usage, or if the appraisal company (probably some guy sitting out in an office in long island) doesn’t realize that no c of o on file doesn’t mean squat.
if it’s a mismatch issue, do you need it appaised as 1-family to meet the value you want? if not, just tell the next drive-by appraiser it has 2 kitchens. or, tell bank #1 to reconsider the appraisal and tell them to actually send out a real appraiser. a real appraiser will know that there’s nothing wrong about using a legal 2-family as a 1-family.
Not clear to me if you have NO CofO or one that indicates you own a 2-family. Many older houses have no CofO, if that is the case, you should tell the bank that you do not have one, nor is it required in NYC.
to avoid a repeat, you need something that qualifies as a 2nd kitchen ( examples in the archives) for a 2-fam and to tell the bank it is such, so the application and c of o match. Unless you are going to change the C of O to a single.
compliance is something the banks are doing these days (go figure) as if they had to foreclose, they would own a property that doesn’t match the c of o. these can’t be financed generally in this market.
nor could you sell your house if you needed to raise some quick cash to someone who needs financing.