Profile picture for deefavcuz

Closing with a temporary CO

We are scheduled to close on our new construction home next week but the builder cannot get the CO until October 5th due to the fact that the front porch is 2 feet over spec so he will need to present the variance to the town board  ....can we still close on an FHA loan with a temporary CO?
  • September 09 2011 - Union Vale
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Answers (3)

My concern would be with the builder. If they can't build a front porch to specs, what about everything else?

Happy funding, Rudi
  • September 09 2011
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Hello, I thought I would chime in on this one! The other poster is correct, you need to consult your mortgage lender and it might depend on your states laws but, from my stand point (Builder) yes you can close with a c/o, I've done lots of them but, I would caution you, especial on a variance issue! If you do you can do what is called a "Dry closing" (money held in escrow @ the title company), or a "Hold Back". If you do a hold back, I would make it a significant one. Don't let the builder tell you would He thinks it will cost. Hold backs are usually 1-1/2 times cost. But here again you are not talking about a normal hold back? Variances are not given out lightly! Check with the governing body….i.e. city, village, and town….etc..

  • September 09 2011
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Profile picture for shapiroamg
Why aren't you discussing this with your mortgage company? My initial thought is yes, people close with temp COs all the time but where they is a chance your porch could have to be chopped back 2 feet, I would have my doubts. I think this is more a lender issue than an FHA issue.
  • September 09 2011
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