VA is more flexible than its reputation, and a garage doesn't count as living area in the first place. VA counts gross living area as finished, habitable, above-grade space. A garage is valued separately, and it only joins the living-area count if it has been converted into space comparable in design and quality to the rest of the home. So an unpermitted garage on its own is unlikely to kill the deal, though it can affect value and how the appraiser treats the space. For any addition, the appraiser wants workmanlike quality, consistency with the neighborhood, comparable sales that support it, and a proper heat source. On top of that sit VA's Minimum Property Requirements, which focus on health and safety. Unpermitted work becomes a real problem when it creates a genuine health, safety, or neighborhood-consistency issue the appraiser has to flag. With two attached ADUs, the appraiser will also weigh how those units are permitted and whether they fit the area. The permitting details drive this answer far more than the VA label does, so get an appraiser's read on the specific property and confirm the current VA property requirements.