Refinance on single family house with MIL unit
I'm currently in a refinance road block. I rent out my single family house to 2 tenants since it has a MIL setup. However, the appraiser have a note that said zoning law prevent my home to be rented to multiple tenants/families. Therefore, the lender underwriter team is hesitant to approve the loan. I have no idea of such law. Anyone encounter this situation before? Any suggestion to move this loan forward?
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It depends on the locations, but in many areas you can't just convert single family to multifamily. There are many reasons for this. I am going to guess you purchased it as a single family home, whether you or someone else added the MIL suite, it is not a legal unit based on what they are saying. Probably your best bet is to contact the city or county and see about getting it rezoned.