If you’ll permit me,I’d like to talk about…

NON-PERMITTED ADDITIONS

John Easterbrook & Patty Aguon (916) 224-7653 or (916) 833-5063

Mortgage Loan Originators

Licensed – NMLS #226555 & 994635

Information in presentation intended for real estate professionals only. Not for consumer use.

Additions Without Building Permits3 Different Loans Types – 2 Different Rules

Information in presentation intended for real estate professionals only. Not for consumer use.

•FHA•VA•Conventional

FHA & VA Non-Permitted AdditionsSurprise - Probably the Most Lenient

• FHA / VA requires appraisers to identify any and all additions.

• FHA / VA will allow additions that are done in a “workmanlike manner”.

• Workmanlike manner, the square footage is usable without any cost to repair subtracted from value

Information in presentation intended for real estate professionals only. Not for consumer use.

Conventional & Non-Permitted AdditionsAllowable, But Not Without Penalty

• Conventional FNMA loans requires appraisers to identify any and all additions.

• If addition was created through an attic, porch, garage and existing foundation was not

Information in presentation intended for real estate professionals only. Not for consumer use.

expanded, living area may be included in the GLA. (Must be confirmed it was done in a workmanlike manner.)

• Permits may be required if significant rehab exists

Non-Permitted Additions Best Practices

When a non-permitted addition is discovered or suspected, get us involved.

Questions? Call us at (916) 224-7653

Information in presentation intended for real estate professionals

only. Not for consumer use. VITEK Mortgage Group is licensed by

the Department of Business Oversight under the California

Residential Mortgage Lending Act. NMLS # 37408