Refinance...updates to house with no permits

If you refinance, but you've done updates to your house and haven't gotten permits, could the bank not let you close on the refi? Or could it cause an issue with your existing mortgage?

Re: Refinance...updates to house with no permits

Yes, a bank won't let you refi with open permits, or if there isn't a CO for new work done. We're in that boat now. We can't refi until I close out the last of my permits. We stopped in to the bank that has our mortgage, and they told us that with the newer rules in place, they can't refi without COs. It won't affect your existing mortgage, otherwise nobody would be able to upgrade their house until it was paid off.

Refinance...updates to house with no permits

Thanks, approx how long does it take to get permits? I guess we should just do it now, because I know we'd run into it if we ever went to sell.

Re: Refinance...updates to house with no permits

If you didn't open a permit how would the bank know what you did. You will most likely need the co's down the road if you expanded the house or added bathrooms without permits. I would think for the refinance you should be fine though.

Re: Refinance...updates to house with no permits

It really depends on the bank. Just like some banks are flexible and will look the other way on lack of C/Os with a purchase mortgage, some will do the same for a refi (and others are sticklers).

But in my experience, it's it presents a health or safety issue, it's not really going to be overlooked. But some banks will even overlook an extension or dormer.

If it's an open permit, then they really can't overlook it.

But if it's an extra bath without a C/O (or open permit or anything), that's more likely to fly.

Every bank has its own rules (and sometimes it depends on the players within the bank -- appraiser, underwriter, etc.). Some banks won't even send an appraiser to do an on-site, interior inspection for a refi (but most will).

Refinance...updates to house with no permits

I am going through the process of obtaining permits for an extension. Since March. The town flagged us for a garage conversion hat was done in 1975. It is delaying our permit for the new stuff and has been a costly pain in the butt. Was never caught and the property was sold twice. Needless to say get the permits bc when it comes time to sell it will delay you immensely.