Posted on: 01st Sep, 2009 11:00 pm
Is there any lender that will issue a mortgage loan on a residential property with an unpermitted addition? Purchase price $772,500, 50% cash down payment, balance to be financed. Unpermitted addition is a second floor loft adding 350 square feet to a structure that was originally 3400 square feet. Zip code 92688. Estimated close of escrow 10/9/09. Thanks
Hi,
It is difficult to get a loan on a house which does not meet certain property requirements. If the addition made to the property was not permitted, it is an illegal construction. I don't think any lender would want to finance such a property. The lenders check the property thoroughly to find out if the construction complies with the rules and regulations. If they find out the addition was unpermitted, they will not offer loans against the property.
It is difficult to get a loan on a house which does not meet certain property requirements. If the addition made to the property was not permitted, it is an illegal construction. I don't think any lender would want to finance such a property. The lenders check the property thoroughly to find out if the construction complies with the rules and regulations. If they find out the addition was unpermitted, they will not offer loans against the property.
this needs to be ironed out with the building department of the municipality in which the structure is located. i agree, lenders don't need to get involved in unauthorized improvements. zoning violations are not going to pass muster.
