Unfinished Home
A friend has just inherited a single family attatched home outright with her brother. She would like to get a mortgage to buy him out and they have agreed on a price. They have been renovating and are not quite finished. Will this hurt her chances of getting a loan? It is mostly indoor cosmetic…
A friend has just inherited a single family attatched home outright with her brother. She would like to get a mortgage to buy him out and they have agreed on a price.
They have been renovating and are not quite finished. Will this hurt her chances of getting a loan? It is mostly indoor cosmetic stuff. Like some missing trim work inside, and debris in the backyard.
Will a bank even care? They seem quite convinced.
If they haven’t discussed yet with an attorney and accountant, they should. Much more to deal with, and commit to writing, than just the question of qualifying for a mortgage.
Is kitchen and are all the bathrooms installed and usable? Are all the exterior doors on and all the walls clsoed up? is the roof on? can you get homeowners’s insurance without builder’s risk at this stage? My understanding is bank wants a habitable home. Debris in the yard and unfinished finish work may affect the appraisal, but ought not affect whether the home qualifies for a mortgage. Check with a good mortgage broker about what s/he is hearing from banks on this as of late.