Will this property be seen as SFR or Duplex?

[Ji Fo]

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%.

[Scott Wolf]

@Ji Fo a title company should be able to assist, based on Certificates of Occupancy.  You don't get to negotiate with how it is viewed by the lender.  Additionally, since it will be owner-occupied, it should not affect the loan much anyway.

[Brandon Vukelich]

You should have access to public records, on a county level, that would help shed light. In my area, under "land use" and/or "county use" we see how the property is currently seen by the local government entities. Based on the example you're offering, I would expect to see it either as SFR (single family residential) or Duplex. I agree with Scott as well, title should clear it up and you typically don't negotiate the property type with a lender. They will lend to you based on the appraisal.

[Andrew Postell]

@Ji Fo you have some good responses above.  You may not even know if this is formally a single family home until you go through the process of the transaction.  So if you do choose to get a purchase contract executed make sure that your "Third Party Financing Clause" gives you enough time to find this answer out.  Lean on your realtor and current lender to know how long that clause needs to be to protect your "earnest money".  

[Ji Fo]

Thank you for the info @Scott Wolf @Brandon Vukelich @Andrew Postell.

Still in the process of selecting realtor, lender, etc., but I will definitely lean on them to confirm prior to moving forward.