Financing a Duplex on Two Parcels

[Sharon Seiter]

I'm currently looking for my first multifamily property to house-hack, and found an interesting duplex which needs some work.  This particular duplex sits on two separate parcels.  Although it's one building, the two halves of the duplex are platted as single family dwellings, and could theoretically be sold individually.  The county recorder currently has both parcels recorded on a single deed, and they have been owned together for years.

The listing agent alerted me that the two-parcel setup may cause complexity with financing - especially FHA. Does anyone have any experience with financing a duplex on multiple parcels? Will a blanket mortgage with 20-25% down be needed? What are some creative ways to make this work?

Thank you for your insights!