house was announced as single fam but finance says no duplex

[Rebeca Perfecto]

Hi everyone! I am doing my very first real estate deal and I found a keeper. A huge "single family" home with 5 rooms two kitchens and 2 bathrooms and a large acre of land. My partner and I were planning on house hacking and renting out some of the rooms.  The house was described as having a "guest house" but really it is completely split in two. We saw a gold mine. After giving our Earnst money , getting pre approved, having an inspector we were good to go. Then came in the appraisal. The appraisal saw that the house didn't connect and has two kitchen therefore he labeled it as a duplex.

The finance people and realtor called in yesterday saying: Good news and bad news, good news loan came out great you guys are in good shape to buy another property but just NOT this one because FHAs or conventional wont cover a duplex.  I was stunned since we were so far in the game and we have to close by March 1st. I asked to please check every means possible since we want this property and it was promoted as a single family home. We have already put in over $3,000. 

any recommendations suggestions? The finance person said they were going back to the drawing board. Should I do a hail mary and look for another finance house? 

[Natalie Schanne]

Rebeca Perfecto - that doesn't make sense. You should be able to get a duplex loan as easily if not more easily because you can show extra income from the other side. (Unless it's not up to code for the area / un permitted construction ). Message Upen Patel .