North Carolina Certificates of Completion?? (Asheville: renting, mortgage broker, credit)

[moremoremore]

Hi all. I'm a former NYer and have no idea as to the NC rules regarding certificates of occupancy or completion.... The house we're buying has a porch that the seller says "was done without permits or is not up to code"...

In NY, you'd never be able to get a mortgage without a CO...which could cost a LOT of money to get, fix or tear down b/c the lender requires the CO...

What's the deal in NC? THANKS ... sorry for all of the questions..

[Asheville Native]

Think you will find that varies from municipality to municipality and be different for county residents, and vary from county to county.

Asheville, being a good nanny government will not issue a CO for issues as trivial as peeling paint on the exterior or a cracked window pane. No idea if it effects the ability to get a mortgage or not, but Asheville uses the leverage of you can't get water service turned on without a CO.

[mommiewrites]

Is this new construction or a resale home?

A CO is issued only for new construction or renovations which 'change' the home ( i believe). A porch wouldnt affect a CO (assuming of course) that it was an addition to the home and not done with other construction.

Now, whether or not it will affect getting a mortgage- depends on the home inspector. If the inspector doesn't 'flag' it- then it will have no affect. If he deems it hazardous or not up to code, then your mortgage lender probably would not approve the loan.

[Asheville Native]

Originally Posted by mommiewrites

Is this new construction or a resale home?

Yes.

What the city has ultimately done is make it impossible for someone to buy a fixer upper, and invest their time and effort into fixin' it up, cause they can't move in until it is 100% and renting elsewhere while working on their investment just doesn't fit what these people are trying to do, save money while investing their sweat into the home.

The city is sending mixed message while working to create affordable housing they are making housing unaffordable on the other hand.

[mommiewrites]

I don't know much (if anything) about purchasing a home to renovate it,but I would *THINK* that there are separate mortgage guidelines and such, or separate lenders who deal with financing for homes like that. I really don't know- from your original post I thought it was just a porch someone had added on themselves...and not an entire renovation project.

If you havent done it already, maybe ask a mortgage broker- I would (again) *think* that they would know...

[Asheville Native]

Originally Posted by mommiewrites

I don't know much (if anything) about purchasing a home to renovate it,but I would *THINK* that there are separate mortgage guidelines and such, or separate lenders who deal with financing for homes like that. I really don't know- from your original post I thought it was just a porch someone had added on themselves...and not an entire renovation project.

If you havent done it already, maybe ask a mortgage broker- I would (again) *think* that they would know...

I don't know how it would effect a mortgage, and I'm sure credit worthy would not have any problems.

The problem is that CITY GOVERNMENT which controls the water system will NOT turn on water service to a house that does not have a CO, which makes it unlivable.

[mommiewrites]

ohhhhhhh I see...

hmmmm..... dig a well?

[GO PANTHERS!!]

Originally Posted by mommiewrites

A CO is issued only for new construction or renovations which 'change' the home ( i believe). A porch wouldnt affect a CO (assuming of course) that it was an addition to the home and not done with other construction.

This is partially correct.

If you are buying a new home, and it doesn't sound like this is the case, the seller will have needed to apply for a permit before the construction had started. The utility companies won't provide permanent hookup without a CO and won't even provide temporary without a permit. It is possible, but very unlikely that a new house would exist without a permit. And a house built without a permit and CO would not have power, water/sewer, gas, etc. or be able to be sold for that matter.

If the property is already occupied before repairs, additions, renovations, or modifications start, you will not need a CO as occupancy has already been established. There are very few times unless the house is completely bull dozed that an occupied house will need a CO after modifications. This is at the digression of the city but you would almost have to be asking to many questions or giving them a reason for it. They hardly ever do this without being provoked.

The issue then becomes the deck/porch built without a permit. This is a very minor issue. If your home inspector clears the construction as adequate, you won't have any problems. If not, the seller will just have to complete the suggested modifications before the bank will close.

The county permits and code enforcement department will only get involved if someone were to call them and tell them that you owned a house were un-permitted work was performed. If that happened then all you would have to do is pull a permit, make sure the work complies with current codes, and have it inspected. There will be no certificate of occupancy needed.

Hope this has been helpful, let me know if you have any other questions.