Unwarranted or un-permitted space is always OK, from a lending perspective as long as: (1) it is just an additional room, with no plumbing or stove; (2) it was built in a workmanlike manner with no health and safety issues; and (3) no significant value is attributed to it.

Hence, un-permitted sun rooms, breakfast nooks, and family room add-ons are almost never an issue.

Issues arise when un-permitted space includes kitchens and bathrooms.

Such areas are allowed only on a case by case basis, depending on the lender and the neighborhood (are such areas “typical for the area”). And again, all un-permitted add-ons must be constructed in a “workmanlike” manner.

Occasionally, we have to remove a stove or even a toilet, depending on the lender, investor or guidelines.

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646

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