Basement Egress requirements

[Carlos Rodrigues]

Good morning BP!! I have a few questions on egress basements. Again my name is Carlos and I'm new to the real estate industry, so sorry in advance for any silly questions. And also thank you in advance for helping me out and you're guidance, it's appreciated!! I have this plan in purchasing a duplex. I'd be getting a FHA loan requiring me to make this property as my primary. The plan would be to lease both floors and live in the basement. I'd like to do this but legally!! Now I've heard I can and I've also heard I couldn't. I've heard if I have a egress basement then I should be fine as long as I can get it certified. If this is true what would be the requirements? This future property would be purchased in Elizabeth NJ (Union County). I'm not to sure on there laws and rules, but how could I find out if they allow this? Thank you in advance!!

[Mike Wood]

@Carlos Rodrigues If the basement is not an existing separate legal dwelling unit, there are likely lots of things to consider than just the egress window.  Your local code office (city or county) will be able to provide the exact requirements.  You will likely need to provide the following; separate exterior access, fire insulation between units, egress windows in sleeping rooms, minimum natural light area, minimum headroom.   

Your likely looking a very large renovation budget to make the basement into a legal dwelling.  You would also have to check with your local zoning to see if you can add a third unit to the duplex.  If your zoning only allows for two units, you will not be able to add a third unit.  And if you do it illegally, you will likely affect the properties resale, not the mention the fines if you get caught with an illegal unit.

Also, you need to consider that FHA will generally not issue a mortgage with significant needed repairs.