The estimate I have is for $3000 to rip out all the old crawlspace insulation, take care of the mold, replace the insulation and add a vapor barrier and two fans to increase the circulation.

They would allow the dog access to the crawlspace. the pet took the vapor barrier as a toy.

The PSI may not be adequate, steel size and pattern wrong, there will be no vapor barrier, etc....At least I never saw one work.

We however use vapor permeable paints that allow it to breath. 

I used to get calls all the time to convert a garage to living space and usually it was not allowed, unless the original garage was torn down.Garages are not built to be used as living space and therefore often do not have a vapor barrier in the slab, or the correct rebar, or concrete PSI.So your first step is to go to the City where this is located and ask them if you can do it.

All new windows (some larger, some removed), new floors and paint, removing a few walls that aren't structural, two net baths, making a basement into a room, closing off another room by extending the floor a little and adding a very small piece of wall, adding a swamp cooler, new water heater, vapor barrier, replacing kitchen cabinets, adding tub in one of the bathrooms, moving toilet bowls a little, adding a larger deck, etc etc

Any requested fee not payable on closing day would obviously vaporize the loan in my eyes.

This creates a vapor barrier that prevents humidity and odor from entering the interior of the house.  

Cons: more maintenance, higher utility bills, need preventative maintenance in place (vapor barrier, adequately sized dehumidifier, HVAC/mini-split), higher insurance. 

I hope the insulation doesn't have a paper backing (vapor barrier) on one side otherwise this will cause a condensation problem.