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Updated over 6 years ago on . Most recent reply

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Joseph P.
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Do I need to notify Lender of multi-family conversion?

Joseph P.
Posted

I purchased a SFH with an owner occupied conventional mortgage a little less than a year ago. The home was in a multi-family zone and had been used as a 2 family for years, but never classified as such with the town. Right after purchasing the home I applied to have it reclassified as a two-family and it was approved. I rent out the majority of the home and live in the basement apartment. The rental covers the entire mortgage/tax/insurance on the property. Now I have the itch to buy another house in the next few months and want to reach out to my broker about the likelihood of getting a mortgage (I own 3 homes total - 2 under my name and 1 under an LLC - and won't be selling any), but question is, was I supposed to notify the Lender that the house was legally converted to a 2 family?

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