Real Estate Home Mortgages/Non-permit bathroom

Advertisement


Question
We purchased our home in 1994 for 300k with an un-permitted second bathroom that had been converted from a closet.  It was no big deal at the time.  We just purchased as-is and it's worked great.  But a  years or so ago we had an Appraiser come by when we were trying to re-fi.  They said the second bath would have to be ripped out if we wanted the loan.  The home is not estimated between $765k and $1.1MM - Zestimate $920k.  And we owe only 95k and the interest rate is 4.625%.  Anyhow - I have no intention of ripping out the bath.  If the place burned to the ground the land underneath is worth $300 - $400k. My loan provider Wells Fargo used to have a program where they could re-fi without the appraisal but no longer.  Any other means we could get a short term mortgage like 10 years with a lower interest rate given our situation??  Thanks!  No problem if not.  Just always looking for ways to keep more money in my pocket.

Answer
Fresno Mortgage
Fresno Mortgage  
It looks like the obvious solution, makes the most sense.  Just go and file the addition with the County.  If the bathroom is un-permitted, then the appraisal issue will always come up, when you go to refinance in California.  And, if you ever sell the property, the appraisal issue will come up, and potentially ruin the escrow for your buyer.  The point is, home loans have gotten tougher in the last several years, and the scrutiny is as high as ever.

Don't look for a short cut.  Get the permit for the bathroom addition, and you'll never have this issue come up, again.  In most Counties, it should take less than 60 days to be added to the public record of your property.  Good Luck!
About Real Estate Home Mortgages
This topic answers questions related to purchasing a home, owning a home, home ownership, mortgage education, mortgage applications, and mortgage needs whether buying a first home or refinancing a current loan. Issues related to home ownership, home equity, mortgage education, refinacing options, home improvment finacing, first time home loans, home equity loans, vactation home loans, and mortgages for investment homes are dealt with here also. Though not the primary focus of this topic, Home Equity Lines of Credits (HELOCS), reverse mortgages, and calculating home equity may also be asked. If you do not see your home mortgae, home finacing, or home equity question answered in this area then please ask a question here

Real Estate Home Mortgages

All Answers


Answers by Expert:


Ask Experts

Volunteer


Joe Almirantearena

Expertise

Search Engine Optimization

Experience

15 years of top search placement

Publications
All Experts

Education/Credentials
Successful top placement of multiple websites

©2016 About.com. All rights reserved.