Single Family Home zoned R2 - lender treating as multifamily

[Ian Cruz]

Hi everyone,

I'm looking to purchase a home with an attached ADU (permitted). There aren't even really separate entrances to the place, unless you count the sliding patio door and the ADU / house are not separated (you can go in between both from inside the house). It's a single family home with a single address, but zoned R2.

While speaking with lenders, they say that they treat this as a duplex, meaning the conforming loan limit jumps for $970,800 to $1,243,050. If this were a single-family home, I would have the most favorable interest rates right now, a JUMBO loan for single family. Talking with some different lenders, I've noticed interest rates these days are in the following order:

[Rick Albert]

My understanding is the properties with ADUs are very different than a legal 2 unit in the eyes of the lender. I would speak with different lenders about this. If they treat the ADU property as an SFR, then you might get what you want with the better rate.