203K loan multi vs 1 lot 2 properties

[Amiris Brown]

I recently spoke with a 203K loan officer here in Maryland, and they were very skeptical that the property I had previously eyed would have even qualify. I find that strange considering that the REO stated it would qualify for a 203K loan program and required the purchaser to only use that program for the Homepath if there was a loan involved.

The reason it was questionable was it was a lot with one address that held two houses on it (a main house and a mother-in-law like guest house). This was seen as questionable regardless of my plans for it, and the loan officer wasn't sure if it would disqualify for the program or not. The loan officer went on to say that duplexes up to fourplexes do not qualify for 203K loans, only multifamily buildings qualify. I asked what the difference was (sounds all the same to me), and they said that duplexes had two seporate addresses whereas a 2 unit multifamily shares the same address. Wow, technicalities are a wonderment!

Is this at all accurate?