Illegal Half Bathroom w/ Traditional Lender

3 Replies

Good evening BP nation! My wife and I are looking for our first house and came across one we really like. Only problem is that there's an illegal half bathroom on the main floor. The current owners have no desire to get the proper Certificate of Occupancy for the half bath and we're using a traditional lender (big bank) so we think this will be an issue to get a mortgage.

1.  Is this common?  How does a seller plan to sell a house without the proper C of O on a house?

2.  Is there a was around this?  The bathroom is small, so is it possible to remove the toilet and sink until the proper certificates are obtained?  Or will the lender not even approve the mortgage with the illegal bath?

Thanks in advance.

@Ryan Breen it depends on where you are and the lender you are using but How would the lender know if the bath is illegal? Lots of un-permitted work is done in my region and it doesn't stop people from getting loans.

A little more information. The house is on Long Island. The issue we've found is that since the bathroom is not on the town records, when the appraiser comes to look at the house the number of bathrooms doesn't match the town records. This also means that the bathroom isn't "officially" up to code even though the work may have been done right. It's caused an issue with big bank lenders since they either want a C of O for the bathroom or have it removed in order to approve the mortgage.