Home With No Bedrooms?

[Weedhopper]

Been looking online for awhile now. Does anyone know how FHA handles home with no bedrooms. Have approx 900 sqft home however there are no bedrooms, just a bed in a large area enclosed on 3 sides and open to the kitchen. There is a closet with no closet door. Subject to a fourth wall and door for privacy????? any info appreciated

 

[J Grant]

I don't know FHA policy on it, but you may want to check with your client, in case the bank won't lend on a house with no bedrooms. Is it possible to close off the area with a door and wall, make it subject to completion of a bedroom? Imo next step is to speak to your client.

 

[Michigan CG]

........... make it subject to completion of a bedroom?.............

Why do so many appraisers think they have the right to tell people they have to change things in their home? The client wants a value of the property. If it is the opinion of the appraiser that the lack of a traditional bedroom is detrimental to the value they may consider the cost to configure the bedroom and make an adjustment for functional obsolescence but requiring a property owner to create a bedroom is beyond our "power".

 

[J Grant]

Why do so many appraisers think they have the right to tell people they have to change things in their home? The client wants a value of the property. If it is the opinion of the appraiser that the lack of a traditional bedroom is detrimental to the value they may consider the cost to configure the bedroom and make an adjustment for functional obsolescence but requiring a property owner to create a bedroom is beyond our "power".

Read my post again please. I wrote what I wrote specifically to address possibility that LENDER MAY NOT LEND ON A HOUSE WITH NO BEDROOM. That is a policy of some lenders, unknown if a Fannie or FHA requirement ( I lack time to search may try later)

I don't advocate appraisers telling owner to change X in their house out of ego (or whatever you think the reason is, since you did not ask me). The reason I would do so is when a house does not meet lender guidelines and bank will not lend on house in present condition or configuration. Thus, if borrower wants the loan, the only way to accomplish that is to make the house subject to changing it or repairing it to meet lender requirement.

Make sense?

Nobody is forcing the borrower to take a loan, and if they don't want to change their house to meet lender requirement, they can refuse to do so.

The advice was predicated on a condition if lender refuses to lend on a house with no bedrooms, which is why I advised OP to speak with their client.

 

[The Bob]

Room Counts, Bedrooms and Bathrooms The real estate profession often describes houses by their total room count, the number of bedrooms and the number of bathrooms they contain. For example, the shorthand convention “5/2/1.5” describes a house with 5 rooms, 2 bedrooms and 1.5 bathrooms. Local custom determines the definition of a “room.” In general, a room is a kitchen, a bedroom, a living room, a dining room, a family room, an office or a den. Rooms do not have to be divided by walls as long as there is space for the designated function. In the Northern Michigan market area therefore, the area in a housed with a Great Room that encompasses the kitchen, dining and living rooms will have the Great Room counted as three rooms even though there are no walls to separate those areas. Lofts used as bedrooms are seen by the market as acceptable bedrooms and even though they may not have full privacy, they can be counted as a bedroom. Bathrooms, laundry rooms, sun rooms, closets, storage rooms and entries are not usually considered to be rooms.

http://www.themilfordteam.com/How_to_measure_a_house.pdf

 

[J Grant]

A property does not need to have a bedroom to exist or be saleable in the market. Many high value properties in cities are studio apartments or lofts with no traditional bedroom.

It is only an issue if A) Lenders have a policy of not lending on properties lacking a traditional bedroom) of B) it is not market accepted ( the only property with no sales for 10 years , in which case lender can have an issue with it or possibly deny loan.

Overall sf and market acceptance and room to close off to a bedroom are all valuation factors we would handle in appraisal development. (and hopefully be able to find similar comps)

 

[J Grant]

http://homeguides.sfgate.com/FHA-inspection-criteria-3321.html

Found this on a quick online search that FHA requires one bedroom (I assume that means a traditional bedroom with walls). But that is a secondary source, anyone have time to search the FHA manual for official from the source? (what the OP should be doing since their question relates to an FHA assignment )

 

[Peter LeQuire]

From the 4000.1 P. 157

F) Requirements for Living Unit
The Mortgagee must confirm that each living unit contains:
 a continuing and sufficient supply of safe and potable water under adequate
pressure and of appropriate quality for all household uses;
 sanitary facilities and a safe method of sewage disposal. Every living unit
must have at least one bathroom, which must include, at a minimum, a water
closet, lavatory, and a bathtub or shower;
 adequate space for healthful and comfortable living conditions;
 heating adequate for healthful and comfortable living conditions;
 domestic hot water; and
 electricity adequate for lighting, cooking and for mechanical equipment used
in the living unit.
The Mortgagee must ensure that cabinets and built-in appliances that are considered
Real Property are present and operational.
FHA does not have a minimum size requirement for one- to four-family dwellings
and condominium units.

 

[J Grant]

If FHA per above does not require a walled off bedroom, and your lender client will lend on houses with no bedroom, then appraise it as is, and you can write in addendum that it cost X$ to build a wall , door and closet if an owner wanted to wall off for private bedroom area.

Any affect on market value/market acceptance/comps needs to be handled have fun lol, hopefully another comp is out there with no bedroom or one bedroom.

 

[hastalavista]

This is not a livability issue but may be a marketability issue, and I'd address it as such.