Does having an illegal apartment affect the chance of getting a mortgage with the bank?

Top incoming search terms for this post

3 Responses to “Does having an illegal apartment affect the chance of getting a mortgage with the bank?”

1. SUNYScott on: 5 August 2009 at 11:52 am

   The bank will rely on the residential appraiser to provide a summary of the property and their estimate of value. If your lender only requires an external appraisal or an AVM (a computer model appraisal), you probably won’t have problems.

   But, if the bank requires an interior and exerior appraisal, they appraiser may catch it, and it may present some problems for you. The bank is more interested that if they need to foreclose on your home they can recover most or all of the loan amount, and doesn’t really care too much about the use of the rooms (whether one is a study or bedroom or the number of people living in the property).

   One last thing: appraisers do not count below ground (basement) rooms in their "# of rooms" calculations or in square footage, so if this is the case, it may not matter much even if the appraiser sees the apartment downstairs.
2. Does having an illegal apartment affect the chance of getting a mortgage with the bank? on: 5 August 2009 at 1:11 pm

   [...] News Sources wrote an fascinating post today onHere’s a quick excerptTags: apartment, apartment investment, bed stuy, br, br condo, contingency plot, crack house, downstairs, emergency ward, FICO score, fixed rate mortgage, fixed rate mortgage loans, getting a mortgage, handy work, home mortgage loan, home mortgage loans, investment strategies, mortgage refinance rates, newsletter focus, poor credit home mortgage loans, rates calculator, rental apartment, subprime mortgage lendersSearch : [...]
3. Posts about Home Refinance as of August 5, 2009 : ClariTree.com – Mortgages and Real Estate News on: 5 August 2009 at 4:48 pm

   [...] [...]