DSCR lender for house with converted garage
I am looking for a DSCR lender that will lend on a home with an attached garage that has been fully finished as living space. Talking with neighbors, it sounds like the conversion was completed a long time ago (like 40 years ago) but the square footage is not included in the county records so I assume the work was completed without a permit. The space has been upgraded over the years and the upgrades were completed well, so I don't think an appraiser would flag any safety concerns, but because the square footage is so different than the official records I am sure they would flag that this may be unpermitted living space.
Any experience with lenders that will lend on situations like this?
Most Popular Reply
The 40-year professionally finished conversion helps, but "looks safe" usually isn't enough by itself. DSCR desks like Deephaven still want the property free of health/safety or housing-code issues that hurt ownership, habitability, or marketability. Whether the missing permits are acceptable is an AE/underwriter call, and the appraiser has to support marketability.
Angel Oak's Investor Cash Flow program is a real DSCR path on a 1–4 unit investment property (purchase, rate-and-term, or cash-out), with the same habitability question.
If you want, I can reach out and try to get this financed. I’m a loan officer licensed in California.