+1 vote
I have an upstairs (converted attic) that was here when we bought the place and we use it for a 'catch all' room at this point.  We have used it as 2 bedrooms but when we to our a second mortgage they would not consider it as 2 rooms because they did not have doors.  we also put new roof and installed dormers but have not opened up the ceiling to them yet.  Would this be a problem for refinancing?
asked Jan 12, 2018 in Refinancing by Cassandra

2 Answers

+1 vote
Hi Cassandra, and thank you for writing. The main consideration when refinancing is the appraised value, regardless of the number of rooms for which you get credit. If your attic was not considered a bedroom when you purchased the property, and you were still able to finance it, the value must have been okay. If the home's current state creates health or safety problems, it could prevent a refinance. If the changes you implemented caused its value to fall, you may also have problems refinancing. As long as these things have not occurred, you should be okay. There are standard guidelines for bedrooms, and I believe that doors and closets are among these things. I would check an online home valuation source like Realtor.com or even your own county assessor's web site, and see if local values have increased. That should give you an idea of the what is happening to your own property value.

You can also ask a lender for rate quotes and what value you need to get complete your refinance. Good luck, and please write back if I have not completely answered your question.
answered Jan 15, 2018 by GinaPogol (47,650 points)
0 votes
All habitable spaces needs to be completed and liveable. For example, lenders will not approve a home if one of the bedrooms has carpeting removed and just has plywood unfinished flooring. Doors needs to be installed. Whether it is a government loans or conforming loans, every room in a home needs to be habitable, safe, and secure.

Gustan Cho NMLS 873293
The Gustan Cho Team at USA MORTGAGE
answered Feb 10, 2018 by GustanCho (106,540 points)
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