I’m seeing some listings that tout a “bonus room,” suggesting that you get an extra room included in the purchase price. What you need to know is that this is another way of saying that the addition (or conversion) was unpermitted, meaning that the previous homeowner did not go through the proper channels or permits through the county.
If you’re going to buy a home that has a bonus room, make sure you run this by your lender immediately. Not every bank will lend on a home with unpermitted additions or conversions. In fact, I only know of one that does not have a problem with it (and that’s one out of MANY), which also means we’re subject to their interest rates and turntimes.
This particular lender requires the unpermitted addition or conversion to be addressed by the appraiser, commenting that “everything was done in a workmanlike fashion and the improvements do not have an adverse effect on the property or pose a liability.” So this may cause an additional hiccup in that the appraiser needs to be on board. With the new HVCC law, there isn’t much we can guarantee anymore.
