Im interested in a Two family detached building with a ILLEGAL 1 br apartment downstairs...How does the bank look on this? I know they do not even consider the income but can it stop us from getting a mortgage on the property?
2006-07-01 04:35:32 · 5 answers · asked by ? 2 in Business & Finance ➔ Renting & Real Estate
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.
However, 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.
2006-07-01 05:22:05 · answer #1 · answered by SUNYScott 2 · 0⤊ 0⤋
Depnds upon the bank and the real estate appraiser.
Good luck getting appropriate home/property insurance. Make sure you have plenty of $$$ to cover potential lawsuits by the tenants
2006-07-01 05:03:50 · answer #2 · answered by ps2754 5 · 0⤊ 0⤋
It might be a different issue state by state. The income produced cannot be considered in the mortgage application for sure.
2006-07-01 05:35:53 · answer #3 · answered by Igor Jivatofski 5 · 0⤊ 0⤋
Yes, because the house inspector will catch it.
2006-07-01 04:37:30 · answer #4 · answered by Anonymous · 0⤊ 0⤋
duh. they won't coz its an illegal one
2006-07-01 04:45:38 · answer #5 · answered by spongebob 1 · 0⤊ 0⤋