You have great answers here :) I am mortgage loan officer , I will share you our financing guidelines that will allow illegal additional unit.I hope this answer helps :) I have come across with clients that had double kitchen and it has to meet below criteria to be accepted.
A one property or two unit property that includes an illegal additional unit or accessory apartment (sometimes referred to as a mother-in-law,mother-daugther,or granny unit.)
*The illegal use conforms to the subject neighborhood and to the market
*The property is appraised for the mortgage without considering any rental income from the illegal unit.
*The appraisal must report that the improvements represent an illegal use
*The appraisal report must demonstrate that the improvements are typical for the market through an analysis of at least three comparable properties that have the same illegal use
*The lender ensures that the existence of the illegal additional unit will not jeopardize any future hazard insurance claim that might need to be filed for the property.
You can reach out to me anytime if you have more questions:)
I've closed a couple of loans recently with additions and structural changes that were done without permits. So, financing is available, however, as stated by others, you could run into problems with the city and/or insurance and resale could be a problem.
~ Best wishes, Elva A. Wormley, Mortgage Consultant, (408) 615-8500, firstname.lastname@example.org,
C2 Financial Corporation, 2845 Moorpark Avenue, Suite 209, San Jose, CA 95128, NMLS #331981 / BRE #01274093
Keith L. Bosworth