Certificate Of Occupancy Permit

by Ana Ford from Maspeth, New York USA

Question For Ask Kate regarding a Certificate Of Occupancy Permit: Hi Kate, I have a question about my house. Can I refinance my mortgage without a certificate of occupancy permit? I'm hoping I can.

Kate Answers: Certificate Of Occupancy (COE)

Dear Ana, Thank you for contacting Get-Your-Best-Mortgage-Rate.com. Mortgage refinancing without a COE from the local governing authority depends on several factors.

You can read all about the permit here at Certificate Of Occupancy - Surprise! which is based on my experience helping someone refinance.

I hope you'll come back to my website again and again in the future. Of course, all of my information is free. Please tell your friends also.

Best Wishes,

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Comments for Certificate Of Occupancy Permit.

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Refinancing without Certificate Of Occupancy, good credit but high debt to income ratio

We would like to refinance our home - currently worth about $600,000. We do not have the Certificate of Occupancy (open permit though).

My credit rating is a c, my husband is a b. But he is self-employed for last two years and this year his company did not show a profit. We also have a high debt to income ratio - 51%. We would like to take a $300,000 15 year mortgage and are wondering what our options might be, for example - could we use a co-borrower?

Hi Kate here, I am wondering the reason for not having a COE. Was construction work only just recently completed? If so, what would it take to get the Certificate Of Occupancy?

If your credit scores do not qualify for conventional lending, I'd recommend the FHA mortgage financing as I also told Jason on this same page.

Keep in mind that co-borrowers are sometimes added to contribute income to lower debt ratios, especially in the case of FHA underwriting. But it's a common misconception that a co-borrower's strong credit score could balance out a lower score of another borrower on the mortgage application. Go here for ways to 6 ways to strengthen your credit score.

I also recommend that you start shopping for a mortgage lender. Since you are only borrowing 50% of the value of your home, you may discover that you get some leniency in underwriting.

Best wishes, Kate

Complicated Mortgage Refinancing
by: Jason from Erie, Pennsylvania

I have an older home, 100 plus years, that is still in need of a lot of work though I have made a few updates (siding, furnace, windows) since purchasing 8 years ago.

The complications are that I'd like to refinance from my 6.5% rate for 30 years to a lower 15 year term but my credit score is hovering around 600.

The other complication is the house has a few problems that I'm worried will stall the process such as old wiring and open-in-progress room renovations.

I'd like to take advantage of the low rates but is it even feasible given my situation?

Hi Jason, Kate here,

Many refinancing homeowners use the FHA loan program due to its friendlier credit scoring guidelines. However, when it comes to property requirements, FHA can be tough!

You may need to finish up in-process renovating projects that have to do with safety and health issues before getting the FHA loan. That might include replacing existing knob-and-tube wiring.

I suggest getting in touch with a knowledgeable and experienced mortgage originator who can help you prioritize projects based on FHA loan requirements.

Ask your lender about FHA rehabs loans too. These all-in-one construction loans from the Federal Housing Administration might be an unexpected solution!

Best wishes in your refinance, Kate

P.S. Follow this link to information on the all-important certificate of occupancy that many lenders will require after major home remodeling.

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You can also ask Kate about your mortgage at Refinancing Advice The Nuts and Bolts.

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