FHA

Garage Conversions:

There are always questions regarding garage conversions, with FHA loans. Here is an updated stance from FHA. Hope this helps:

• If a garage was converted without a permit:
• The appraiser must show the value as a garage, not as a converted room
• The appraiser must estimate the cost to cure for re-conversion back to a garage
• The appraiser must indicate that it was completed in a workmanlike manner
• The lack of car storage is not prohibited by local ordinances.
• The garage is ineligible if it represents illegal use and illegal zoning.

From: Steve Guenza, Mortgage Adviser, MLO # 244611, 707-765-4453 Office