Short answer: often yes, but not from a bank or most securitized bridge lenders. Many lenders sell their loans to investors who require a certificate of occupancy (CO), so they decline automatically. Balance-sheet lenders, who keep loans in-house, can lend without one if the rest of the deal is strong.
Three very different "no CO" situations we've seen
- The town doesn't issue them. A high-value Texas home in an unincorporated county had no CO because the county never issues one. One lender still said it couldn't proceed. That's paperwork, not risk, and the fix is a lender that accepts alternative proof of completion.
- Mid-construction purchase. A Colorado buyer purchased a half-built house from sellers who never finished it. A construction-completion loan handles that; a standard purchase loan doesn't.
- Gutted building, low leverage. A free-and-clear Massachusetts warehouse planned for a 202-unit conversion asked for only about 20% of value. It was still declined by a securitized lender purely because there was no CO.
What to do
- Find out why there's no CO before you call lenders. The answer decides who to call.
- Gather what proves condition: permits, inspection sign-offs, a contractor letter, photos.
- Go to balance-sheet bridge lenders, not securitized ones.
Related: Bridge loans · Construction