Home Buying in San Jose>Question Details

Lisa, Home Buyer in San Jose, CA

I am looking to buy a house in San Jose Ca usung an FHA loan. The house has an unpermitted garage conversion. Will that stop it from passing an FHA?

Asked by Lisa, San Jose, CA Sat Sep 12, 2009


Help the community by answering this question:


Hello Lisa,
In general if the garage was just converted to a bonus room with no additional plumbing or electrical then you should be fine. Certainly, the appraiser would need to comment that the conversion was done in a workmanlike manner with no health or safety issues. My company works with many lenders, but one of the more strict lenders is B of A and they would require this to be appraised as a garage with cost to cure noted. But, if the addition has additional electrical or plumbing then permits are required. Other investors will not necessarily require permits if there is new electrical or plumbing but will mostly depend on the appraisal and appraiser comments in regards to this.

To summarize, if you think the home will appraise for what you are paying without the garage conversion, then that is the first hurdle. And as long as the conversion poses no health and safety issues, you have a good chance of this working out for you.

Best wishes!
Julie Thall
0 votes Thank Flag Link Mon Sep 14, 2009
The best place to go for this answer would be your current lender. If you are shopping for a house, you should already have a preapproval letter from a lender. I recommend you call (or have your Realtor call) the person who provided you the FHA preapproval and ask them. FHA simply insures the loan, the money comes from a traditional lender and their underwriting requirements vary from lender to lender.
0 votes Thank Flag Link Sun Sep 13, 2009
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