Financing for combined units

You would have to purchase the unit first (as an investment property bc you already own the one next door as your primary). Then combine the units and get a final certificate of occupancy of the combined units. Then you can decide to refinance and combine the 2 mortgages or just keep 2 mortgages. Until you complete the work and get the necessary documents, you won't be able to combine the mortgages. sunny.hong@bankofamerica.com

Combocurious: These loans are still quite common. You would be acquiring the new property and simultaneously refinancing your existing loan in one transaction with one new mortgage. The estimated value of the combined units is used to determine your loan amount and maximum LTV. Keep in mind that you will be required to have a contractor's estimate, blueprints, etc...as part of the conditions required to close.

At closing, the banks will then hold a small escrow from you until you actually "break through" and combine both units. This is to ensure that your intentions are really indeed to combine the units, rather than to rent one of them out as an investment property.

Feel free to email me at nycmortgage@gmail.com if you'd like to discuss further.

see if this thread is helpful

http://streeteasy.com/nyc/talk/discussion/18615-combining-two-units-advice

small escrow? define small

gcondo: The escrow is not based upon the total renovation costs. It's simply 150% of the contractor's estimated cost to break-through a wall, technically combining both units, and to disconnect one of the kitchens. Usually the contractors estimate that the cost will be $5,000 ($7,500 escrow).