refinancing inspection question

I'd like to refinance to get a cheaper rate, however, I tore out the walls and ceiling of the kitchen as we are remodeling, gutting it to the studs. I set up a galley style kitchen in another room while the old one is being worked on - just as the magazines suggest, so I thought I was doing well.

The problem is, I was told by Chase, which holds our current mortgage, that any unfinished room, one not sheetrocked, would not allow the house to pass inspection. Anyone know if that is true? I'd hate to have to throw together a kitchen when I plan and have the money to do a nice one - and I hate to have to wait six months to refinance after it's done. I have a huge amount of equity in the house compared to the mortgage amount and am not planning to go for a bigger mortgage. I just want a lower rate.

Has anyone had their house inspected lately and had it pass with an unfinished space? Will I have to sheetrock the room just to pass inspection, then take it all off?

Re: refinancing inspection question

When we took a home equity loan they told us we needed the rooms to be "finished". Basically, we were told we had to paint the new sheet rock in the living room, kitchen & rec room and put the laminate floors in. But for a kitchen I'd think it would need cabinets, counter tops, etc.

Re: refinancing inspection question

ask them to define "finished"

my Dad had to do this for a condo he is buying/renovating in FL

the kitchen just needed a sink and stove

so they bought the stove and put in one of those plastic sinks

that was enough to get him a mortgage

there is nothing else in the kitchen

Re: refinancing inspection question

from an appraisal perspective, your house would be considered to have a "cost to cure" - what it would cost to "finish" that room. At the very least, it would be the cost of the sheetrock & labor.

Not having a kitchen would be show stopper - is your makeshift kitchen functional: fridge, running water/sink, oven/stove?

Chase tends to be pretty strict with "cost to cures" and often won't lend if a house in in the middle of renovations or they'll hold some money back until the repairs are complete.