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Old 06-18-2012, 08:14 PM
 
20 posts, read 40,261 times
Reputation: 13

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So we are shopping for a one family house in queens and saw one that we like. The current seller is renting an illegal basement apt. We want to use the entire house as a one family. Someone mentioned to us that a large bank when inspecting would have an issue with a house that has a kitchen and bathroom in basement when approving a loan and to go with a smaller bank and a broker. We have a preapproval from a large bank and have excellent credit and would put 20% down. Anyone knows how this works. Thanks.
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Old 06-18-2012, 08:36 PM
 
Location: Brooklyn New York
18,502 posts, read 31,720,806 times
Reputation: 28067
make sure when you buy the house if you do, it is vacant, no tenant.
none,

illegal basement apartment and tenants, will become your nightmare.

truly, do not ever use a basement as an illegal apt, the tenant will know it, and you will be sorry.

make sure the house is delivered vacant.
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Old 06-18-2012, 08:39 PM
 
20 posts, read 40,261 times
Reputation: 13
Default Thats what we plan on doing...

But i am trying to figure out if a bank would have an issue with that when they send an inspector and he sees that there is an apt. Meaning for the loan approval process.
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Old 06-19-2012, 09:00 AM
 
Location: Brooklyn, NY
1,271 posts, read 3,239,091 times
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Quote:
Originally Posted by DiaAn View Post
But i am trying to figure out if a bank would have an issue with that when they send an inspector and he sees that there is an apt. Meaning for the loan approval process.
The only response we can give is "maybe". You could try getting the current owner to rip out the basement kitchen as part of the deal. (I assume you plan to do so after moving in anyway.) Basement bathroom should not be an issue.
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Old 06-25-2012, 07:46 AM
 
Location: Manhattan
25,411 posts, read 37,185,886 times
Reputation: 12828
Quote:
Originally Posted by BrownstoneNY View Post
The only response we can give is "maybe". You could try getting the current owner to rip out the basement kitchen as part of the deal. (I assume you plan to do so after moving in anyway.) Basement bathroom should not be an issue.

I agree...have the current owner tear out the kichen... neatly, and vacate the tenant. Make this a contingency of your offer.

Have the bank inspector/appraiser see an empty basement, aka, a potential MAN CAVE, except for the toilet.
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