Seeking financing on pre-manufactured Triplex in Nova Scotia

[Greg Ripley]

Hey BiggerPockets, I am seeking financing on a brand new, turn-key, pre-manufactured triplex that I will owner-occupy in Nova Scotia, Canada. 

This mini-home-style Triplex is on a piece of land in town that is zoned correctly and has all utility hookups. I am under contract to buy it turn-key with an occupancy permit, that the builder has already been granted. It sits on an engineered screw pile foundation. 

The issue is that the Builder does not have a CSA stamp and therefore cannot get a 3rd party New Home Warranty, as required by a lot of lenders I have talked to. The builder has agreed to offer the same Warranty, in writing, through their company. I have 15% down that went directly to the builder. All in, with a 12'x20' shed, mini-splits installed, and landscaping cost is just shy of 290K. Anticipated rents: $1000-$1200 a unit, a month. I have had no issue with qualifying for the loan but lenders have been getting hung up on the fact that the Warranty cannot be completed through a third-party company. I am told by my lawyer, that this is not a regulation in Nova Scotia. 

Any advice or leads is greatly appreciated!  

[Cody Neustaedter]

I know some provinces allow certified electricians to come out and inspect the property to ensure it meets standards in lieu of a CSA stamp...but I am sure you have already explored that! How hard is it for the builder to get the CSA stamp?

[Greg Ripley]

It can be a lengthy process. From what I understand, the facility has to be inspected by qualified personnel, health and safety programs must be inspected, designs, etc. The builders primarily build for corporations that buy homes for their workers who are new to Canada. Therefore financing issues have not come up that I know of. 

I wasn't aware that certified electricians could do this. As I look into it more it seems promising. Have you ever had a client of yours go through that process?

[Cody Neustaedter]

Quote from @Greg Ripley:

It can be a lengthy process. From what I understand, the facility has to be inspected by qualified personnel, health and safety programs must be inspected, designs, etc. The builders primarily build for corporations that buy homes for their workers who are new to Canada. Therefore financing issues have not come up that I know of. 

I wasn't aware that certified electricians could do this. As I look into it more it seems promising. Have you ever had a client of yours go through that process?

 I have not had one of my clients go through this but an electrician I work with has provided this service before.

Hopefully it has gone well!

[Greg Ripley]

Quote from @Cody Neustaedter:

Quote from @Greg Ripley:

It can be a lengthy process. From what I understand, the facility has to be inspected by qualified personnel, health and safety programs must be inspected, designs, etc. The builders primarily build for corporations that buy homes for their workers who are new to Canada. Therefore financing issues have not come up that I know of. 

I wasn't aware that certified electricians could do this. As I look into it more it seems promising. Have you ever had a client of yours go through that process?

 I have not had one of my clients go through this but an electrician I work with has provided this service before.

Hopefully it has gone well!

 Yes, everything worked out! As I investigated further into the CSA stamp by a qualified electrician, or silver label as some provinces call it, no one I could find in NS had done it. The Builder could not get a CSA stamp but did, unexpectedly, find a third-party New Home Warranty Program that enrolled him. This satisfied the original lender, and we were able to close a few days later.