Updated over 3 years ago on . Most recent reply
Will this property be seen as SFR or Duplex?
Hello there! I’m new to Real Estate Investing and in the process of purchasing my first property. I came across a listing that I like and have a question about how the listing will be viewed from the Lender’s perspective, so that I am able to pursue financing that makes the most sense (and cents).
The property is listed as a single family home, but is referenced as previously being used as a duplex- I believe they have separate addresses.
Has anyone gone through this specific scenario? Did it come down to you negotiating w/ Lender to view the property as one property type over the other based on which would give you the more favorable financing terms?
Background: this will be my RE purchase, owner occupied, prefer a low down payment 8-10%.
Most Popular Reply
There is no negotiating with the bank. It either is or is not a legal duplex and this is determined by what occupancy the city last approved through the permitting process and that is what the appraiser and lender will go by. The city planning department and/or building department will have these records and can share them with you. If it is an illegal duplex and has code violations because it was not built to code, then conventional lenders may not finance it.