Property appraised , and it came back as a 2-unit ......

[Michael Dunn]

I'm in a bit of limbo right now, in that..... The property I have been trying to get approved on and purchase, is from the 50's , and it has a separate " workshop " that is separate from the main house, but it is all connected via the same roof

Back in 2006 ( which was when it was last appraised ) , it came back in that appraisal as a 1 Unit property with a workshop

But as of last week, after I had it appraised , it came back in the report that it is now considered a 2-unit dwelling

The thing is , yes ..... it does have it's own kitchen, bathroom and bedroom in the un-attached workshop ,BUT, it was setup back in 2006 the same way , and it came back as 1 unit then , but now it is being deemed a 2-unit.  This part I don't get

The thing is, I am trying to get financing through an FHA loan, and here is what my Lender recently told me ( what they were told from the appraiser ) .....

" They said there are a number of issues with the house conforming to the government loan guidelines. It will not.

However, you may be able to get a non-conforming, short-term bank loan. Most bank loans have a term of approximately 3 to 5 years.

Some issues making it not conform are as follows:

The appraiser cannot find any 1 Bedroom homes in the vicinity that have sold within the last 6 months to 1 year to use as a comparable sale

Another factor that made it difficult to find comparable properties that have sold within the last 6 months to a year was the fact that there are two living units.

Repairs that were easily identifiable was the rotted wood on the outside that needs to be replaced and repainted, appliances need to be installed in the kitchen, outside of home needs to be painted. Peeling paint needs to be scraped and painted and the interior painted completely on the inside. Since the house was built prior to 1978, you will have to have certain procedures in place to eliminate the old paint chips. Since the power was not on, there was no way to determine if the plumbing, electrical and HVAC was fully operational. "

Just wanted to get fellow Members advice an recommendations , as to what I could possibly due, to purchase this using an FHA loan at 3.5% down

Thanks so much