Financing Dilemma .....

[Michael Dunn]

I have run into a roadblock on purchasing this property , that up until last week , seemed like a sure thing

Initially , I was going with a 203K ( rehab loan ) through the FHA , since there is more than $5,000 in repairs that are needed on this property ( it's in the $20,000 - $25,000 ) range.

Well, I had an appraiser come out to appraise the property , and was told that .....1. there's no way to appraise it / give it a value, since there are no houses to compare it to ( they're claiming it's a 2 unit property ), and there are no properties with 2 units in the area.  

The Tax Records through the County say it's a single family residence and always has been .... the 2 " units " are connected by the roofline , and yes the other unit has it's own meter ( which likely doesn't help matters ) . It was initially a workshop, but someone some 20 years ago converted it into a living space ( with a bathroom, kitchen and bedroom )

I really want this property , as it has 2 rentable units, and is in a great location Plus, the price I can purchase it for is a great deal

Bu this " 2-unit " ordeal has thrown a wrench into things

I know that I could get it re-appraised, and " maybe  the new appraiser will appraise it differently .

The property is in Mississippi, Butttt, there are quite a few properties about 30 minutes away in Memphis,TN that are 2 units, Duplexes and multi-Family properties. So , could the appraiser not look for comparablles in the Memphis area, since there are plenty or properties that are 2 + units ?

My Lender sent me the following statement yesterday in an e-mail....

" I am checking with the bank to see if they can do it as a bank loan and not mortgage "

What exactly does this mean please ?

And instead of trying to purchase this property, should I try and go with a Conventional Loan , and pay 5% down?

This would likely be less restrictive , and also they ay " look at " the property in a different light, and appraise it s a Single Family residence ?

Tanks so much fr any and all help....

I'm in a quandary on what to do, .... just need to find comparables, and get it appraised without it being a 2-unit ( if purchase with an FHA 203k )

OR

maybe I should can the FHA , and try and get a Conventional with hopefully 5% down ?

Thanks again - Michael