Adding ADU to fourplex in California

[Account Closed]

So apparently the ADU law (SB 1069) in California allows the addition of an ADU to a fourplex.

Does anyone know if conventional lenders will still consider this to be a residential property?

(Is it still a fourplex?)

If it becomes a fiveplex, are there comparable lending options anyway?

[Chris Mason]

Originally posted by @Account Closed:

So apparently the ADU law (SB 1069) in California allows the addition of an ADU to a fourplex.

Does anyone know if conventional lenders will still consider this to be a residential property?

(Is it still a fourplex?)

If it becomes a fiveplex, are there comparable lending options anyway?

 Fannie Mae residential will not lend on 2-4 unit properties that also have one or more ADUs. It's pretty black and white, this is now commercial real estate. 

No, commercial financing isn't really comparable to residential. "Only X higher / more expensive / etc than a residential loan!" is a boast for a commercial borrower or lender, as in "5.75% and a 25 year term with 30% down, not far off of Fannie!"