House hacking a duplex in Baltimore

[Robert Carter]

Hello BP, 

I'm having the toughest time financing a duplex in Baltimore city, they had to push the closing date back 2 times already. It seems to be the appraiser that is holding it up. The property is designated as a single family row home with an in law suite. I'm doing a conventional homestyle loan which I can renovate the property to what I want, up to a certain $ amount. Unfortunately since it is designated as a sfh the appraiser when they come to check out the home they are seeing 2 separate living spaces meaning 2 units. Of course my plan is to house hack where I live in 1 unit and then rent out the other unit. When we renovate the property we will be pulling permits to make it a duplex. I'm totally perplexed by this situation because I thought from reading and listening to podcasts that as long as it is less than 5 units that banks see a SFH and treat it as such but that hasn't been the feedback I have been receiving from my loan officer. Is there a way I can salvage this deal or should I cut my losses and look for an alternative way to get into REI? Thanks any guidance or feedback would be great.