FHA with open permit on Long Island (loan, lawyer)

[zulu400]

Hi guys,
I just learnt that a "no permit" is better than "open permit"

The owners have an open permit (did the work, and never got the CO). My attorney said if the sellers cannot get the permit by the closing date then we should ask the bank to see if we could close with the permit pending and sellers escrow.

Is this usually an acceptable situation for all parties concerned ?
I am under the impression that its usually the banks call. Please enlighten me.

[mr.mrs.b.i]

We actually had a very similar situation. We had 2 open permits and our lawyer said they have to get it done. We had a deadline due to an interest rate lock, and it was then up to the bank if they would accept us buying the house without the permits being finalized and putting money in escrow. So i believe this is common.

Our bank (BFCU) said that they may let the permit slide (meaning they'd put the money in escrow) on something small like our Sun Room (this was one of the open permits) but they would not let it slide on something like the dormer (which was our other open permit).

I'd call the bank and ask them.

[zulu400]

Originally Posted by mr.mrs.b.i

We actually had a very similar situation. We had 2 open permits and our lawyer said they have to get it done. We had a deadline due to an interest rate lock, and it was then up to the bank if they would accept us buying the house without the permits being finalized and putting money in escrow. So i believe this is common.

Our bank (BFCU) said that they may let the permit slide (meaning they'd put the money in escrow) on something small like our Sun Room (this was one of the open permits) but they would not let it slide on something like the dormer (which was our other open permit).

I'd call the bank and ask them.

Ok I see, I have 2 permits that require a CO.... one is the additional garage and the 2nd is a 10 by 10 laundry room. I have asked the loan officer and lets see what they come back with.

[mr.mrs.b.i]

Goodluck!!