Un-permitted space (including baths) and improvements are usually allowed. Here are a few guidelines:

  1. Appraisers cannot give value to the space or count it in gross living area or room-counts. A house with permitted 3 bedrooms and 1 bath is still a 3/1 from an appraiser’s perspective even if it has 2 extra beautifully finished baths with no permits.
  1. Appraisers must comment that the un-permitted area was improved or completed in a “workmanlike manner.”
  1. The space cannot present any health and safety issues such as exposed wiring, uncapped plumbing, exposed sub-floors or similar issues that come up when improvements are not completed.
  1. Un-permitted kitchen areas can have sinks and even dishwashers, but stoves need to be removed; kitchens must be turned into “wet bars” effectively.

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

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