CofO question for refinance of a 2 family used as 1

Our house has a 2 family CofO, and while we are using it as a 1 family, we made sure to keep a kitchen and full bathroom in each duplex. The duplexes used to be divided completely with a wall put in by the last owner, and we cut an opening into it years ago so that we could access all floors of the house without going outside. We want to get rid of the wall altogether, but wonder if that will be a problem when we want to refinance. Does a 2 family house have to have two completely separate living spaces, or was that done simply to make the units more attractive and private to renters? Should we not only keep the wall for the refinance, but put a locking door in it as well? Or will the bank not care?

Amy

in Appraisals 13 years and 2 months ago

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callalily | 13 years and 2 months ago

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We have a two family with no separation between the units. This is how the house was built originally. We had no problem getting financing.

Springs | 13 years and 2 months ago

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Noted as functional obsolescense due to 2nd unit not being separated 100% from 1st unit.  Cost to cure , say $5-10k, reflected in sales comp approach or cost approach.  Some banks say fix, some waive stip…

adam_dahill | 13 years and 2 months ago

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I do 2 family used as 1 family loans all day long. It won’t be an issue.  Give me a shout Adam Dahill adahill@wcslending.com

pigthree | 13 years and 2 months ago

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does your house really have a C of O or is it just designated a two family by the DOB?

housebywe | 13 years and 2 months ago

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Kitchens and baths are usually the issue.  Very unlikely the bank will even notice the lack of partition, partlcularly in the case of a two family.  Many older designated two families units are not “separated”–it’s one of the priorities of more contemporary renovation.