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Renovation Financing

Started by UES_Family
almost 15 years ago
Posts: 6
Member since: May 2008
Discussion about
What do people typically do when buying a co-op needing renovation. A couple of lenders said I need a construction loan since I will lose my C of O at some point. Do people ordinarily not discuss their renovation plans, just get a normal mortgage and then renovate?
Response by NYCMatt
almost 15 years ago
Posts: 7523
Member since: May 2009

They buy within their means and pay for the renovation with cash. The days of piggy-backing renovations loans onto the mortgage are long gone.

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Response by UES_Family
almost 15 years ago
Posts: 6
Member since: May 2008

A couple banks are suggesting they won't even give you a mortgage until you complete the renovation; i.e., you are supposed to buy the apartment and renovate it all out of your pocket. Other lenders have no issue with a renovation. One lender said I would be in default on my loan if I got a mortgage and then renovated, mind you I am only talking about a 30% LTV loan. Is it really the case that if you get a mortgage at purchase and then do a renovation that you would be in default?

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