Did anyone take regular mortgage for investment property and while tenants are there applied for permits for a new construction? Are there any limits how long tenants should stay there while waiting for permits?
Investor · Hatboro, PA · Member since 2016 · 3k+ posts · 866 votes
9mo
Hi @Olga Daisel nice to meet you here on bigger pockets. So generally there’s no rule that tenants can’t remain in place while you apply for permits, as long as the loan was originated honestly as an investment property and you’re complying with local zoning and lease terms. The key issues are lender intent and local regulations, not tenant occupancy. Just make sure your lease language allows for termination or non-renewal once permits are approved, and confirm with your municipality whether occupancy affects permitting or inspections. When in doubt, a quick check with your lender and local building department can prevent surprises later.