@Ambioris Perez Maybe you can go to the city and get the permits you need now. You might have to extra work to open walls to allow inspections but it will probably be worth it, especially if you plan on selling this property in the future. If you can't refi it now, any potential buyer that needs to get financing won't be able to so either. Get your permits, then try to refi.
Sounds like your use of the property is illegal, which means no lender is going to lend on it. Also be prepared for your local municipality to have issues with the conversion.