FHA: A Shared Garage

by Michael Bolton on October 18, 2011

Who do you think owns this garage?

Shared Garage

They both do!

Shared Garage Divided

So what does FHA say about this-NOTHING! At least not in any of their handbooks. However, there are going to be a couple of things any lender is going to look for. First, they’re going to want to make sure that there is a proper easement for the shared driveway (see my prior post on shared driveways). Second, there is going to have to be some type of recorded document that dictates: ownership, maintenance, and terms of sharing.

The underwriter is going to have a lot to say about whether or not they’re going to lend on this type of property. From a value perspective it would be best to have at least one comparable sale with a similar type of garage. If this is the only house around with this type of garage, and in this case it was, an adjustment may be warranted due to the stigma that may be associated with this type of garage.

If you have any questions, or real estate appraisal needs (divorce, bankruptcy, tax appeal, or estate planning) please contact Michael at 612.599-2581, or use the form on the contact page.

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