Both have non-conforming uses (one has two houses on a lot that is slightly smaller than the required single family size, the other is a SFH divided into 3 units on a lot that allows duplexes but again the lot size is too small).

Additionally, there are federal and provincial regulations to which the note / mortgage must conform - we used one of the Big-5 bank's mortgage/note packages as a template.  

Then maybe you went to a portfolio lender or got hard money since again based on your statements you don't have the buyer profile for a normal conforming loan Did you get a seller carry or did the seller potentially offer that ?

@Lisa Sluss Have you considered a bank that doesn't conform strictly to fnma or fmcc?

Additionally, even if you do get the variance successfully, you will likely need to conform to current construction codes for 4 units which includes sprinkler system, fire panel, and other fire code items.

10/7/2019Aaron – thanks for the post….the price range and location sound realistic …good to se that you down payment is ample to avoid the mortgage insurance need and to keep the loan in conforming range ….I would think you could get a bit more than 1K per room depending on the location/ type of property / room size etc … even if the purchase pencils out slightly worse than the renting scenario , its worse considering as a step towards getting a property under your belt …ideas 1) buying a 2 or 3 plex at a higher price point but this would allow higher rental income 2) buy the property as a total investment property and rent for a larger amount per month …your down payment would allow this wo work ..thanks

Conforming 30 yr bank note How did you add value to the deal?

Ask to see a quarterly report from one of their portfolio properties and see if it presents clear, concise information and appears to conform to common accounting standards. 

Point is to make sure you understand that lenders specific guidelines so that you aren't doing anything illegal or unethical because no two lenders are exactly alike in what they allow, even on the conforming loans. 

You got the persistence and determination down to hold on five to six months with a conforming lender.