I few days ago, I wrote about escrow failures and a reader wrote in with more anectodal evidence that lenders have tightened up standards.
Here are two new ways to fail to get a loan.1) If you have an open building permit not marked as COMPLETE on the DBI web site on a property the loan app can be rejected.Reason given by lender was that some people begin a project like a kitchen remodeling then walk away from their mortgage leaving the lender with an unfinished and un-saleable house. Of course, that assumes everyone in S.F. takes out building permits for remodeling work. Nonsense.2) If your name has not been on the title for less than six months a refinancing can be rejected.Neither of these two “rules” were mentioned on the loan application documents or in face to face meetings with the bank until after we paid for the loan application package.
Thanks kind blog reader! It’s true. Lenders have all sorts of new restrictions they’re throwing into the mix. I recently had an FHA loan fall apart because one person in the building owned more than 10% of the units (one person owned 3 units which put it at 14% for the building.)
Do you have San Francisco real estate stories you’d like to share with others? Questions you’d like answered? Holler. Other readers can (and want to) learn from you. 
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