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Converted Garage

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Mike Siegfried

Thread Starter
Junior Member
Joined
Nov 6, 2005
Professional Status
Certified General Appraiser
State
California
I have become FHA approved, but will not accept any assignments until I take the class in October so I know all their rules. Meanwhile, a client asked me a question about converted garages that I can't answer. Apparently, the attached garage has been converted to living space without permits including the removal of the doors. He wants to know what FHA would require in order to lend on it. I was able to tell him that my standard way of handling this is to count it as a garage, but then subtract the cost to cure to turn it back into a garage (new doors, etc). I'm wondering what FHA's take on this is. Any thoughts?

Mike
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
I have become FHA approved, but will not accept any assignments until I take the class in October so I know all their rules. Meanwhile, a client asked me a question about converted garages that I can't answer. Apparently, the attached garage has been converted to living space without permits including the removal of the doors. He wants to know what FHA would require in order to lend on it. I was able to tell him that my standard way of handling this is to count it as a garage, but then subtract the cost to cure to turn it back into a garage (new doors, etc). I'm wondering what FHA's take on this is. Any thoughts?

Mike

You have to be thorough in your analysis and report that. What does the local zoning authority say about a garage? Is a garage mandatory to be in compliance with zoning? Does the garage conversion represent any health or safety or marketability issues? Are there other comparables in the neighborhood with garage conversions? Does the local authority enforce its codes? Can a retroactive permit be issued?

You have to two issues here; the lender guidelines and FHA guidelines.
 
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