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Un-Permitted Additions OK; Min Number of Open Credit Accounts

Many Realtors are overly concerned about additions built without permits. Such additions are usually OK as long as: (1) No value is given to them in an appraisal; (2) they don’t contain stoves or ovens or look like a kitchen – un-permitted kitchens are never OK; (3) the addition is complete and the appraiser states that “the addition was built in a workmanlike manner”.

We sometimes have borrowers with stellar credit and credit scores in the 800s, but they do NOT qualify for loans at our best lenders. The reason is that they have too few open accounts (lenders like to see at least 3 to 4 open accounts, depending on the lender). Once again: Do NOT close out your credit accounts. Open accounts are good as long as you keep the balances very low or at zero, and as long as there is no annual fee.

Note that we have several lenders that have NO “minimum accounts” requirement, but their rates tend to be somewhat higher.

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167