Home Buying in Eustis>Question Details

Austin, Home Buyer in Eustis, FL

Will Fha approve a home for funding without a garage?

Asked by Austin, Eustis, FL Thu Jan 28, 2010

I am looking at a home with a converted garage, on top of that it appears that there are not any permits for the conversion. Will FHA care about the first issue and know about the second?

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Hi Austin,

Yes, they will care. Unpermited work done outside building codes is a giant red flag. Will they know? The home is going to be appraised by a professional right? Unless the appraiser is incompetent, of course they'll know.

If this is a home that you really want to live in, then contact a real estate attorney to go over you options. If this is just an investment, then walk away and find another.

Good luck,
Mark LeMenager
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Search the MLS without obligation or registration from my website.
0 votes Thank Flag Link Fri Jan 29, 2010
From my experience and thourough scanning through appraiser forums, if you have a converted garage and no permits to convert the garage, you are going to run into problems. The way FHA looks at this is, a person is cheating the tax roll system by converting their garage and trying to claim the additional sq' as gross living area (GLA). They add the additional GLA, but they don't pay tax on it. In turn, the gov't gives you a hard time with their FHA loans. I would resort to an appraiser on this one to know for sure. Call Jim Vredevoogd (ver-de vogue) with Apprasial Associates or talk to his daughter Heidi Schrock: 941.255.0356. Make sure you tell them I sent you over and they will take care of you.

If you have interest in securing an FHA loan in Florida, I can certainly help you. I have been writing mortgages for the last 10 years and am very familiar with the Florida market, FHA loans and potential FHA hurdles (and how to get aroud them). Shoot me a call, email or go to our website and use our chat server.

Ryan McPartland
Co-Owner / Licensed Mortgage Consultant
Primary Mortgage Group
239.206.4439 Direct
ryan@primarymortgagegroup.com
More about me: http://www.linkedin.com/in/ryanmcpartland
0 votes Thank Flag Link Thu Jan 28, 2010
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