How to Finance Two Separate Houses One Deed?

Question

Looking for a conventional loan to accommodate a property with two separate houses on one deed.

- Property receives one set of taxes

- Both houses are approximately the same sq ft. (1300)

- Two single-family homes, not attached (two different addresses)

- Property size 0.45 Acres

- Township won't allow subdivision unless each house sits on 0.5 acre lots

- Will reside in one house upon purchase, and will rent out the second house

- One house currently rented out for $1,400 a month with a one-year lease

- Purchase price $260,000

Looking for ideas or best ways to finance this type of property!

Thanks in advance!

Sam Yin · Answer

@Josh Casari

I am going to assume you have run into some difficulty after starting this transaction. I wonder if this is area specific?

I post this because I do not see any issues with this type of property. This is a very common property type and lenders loan on it and escrow records it all the time without issue. Insurance can be had for each structure.

I have had serval properties in this manor, recorded on a deed, with 2 separate addresses, and insured.

I'm curious as to what your lender or escrow has advised or instructed that creates the challenge?

Alecia Loveless · Answer

@Josh Casari I have a property like this. My insurance company had a harder time insuring it than the lender had with it. Try a small local bank.

Jacob Sherman · Answer

Yup this can be done 100% would just be considered a 2 family if its on one parcel . Will have to be fully investment though and won't be able to live in one of them

Jason Wray · Answer

Josh,

If the (2) homes are on the same parcel you can use a DSCR loan program.