FHA with an Accesory Dwellinng Unit (ADU)

[Karen Sanders]

First-Thanks for reading my book.

I am buying a house for myself and it has an ADU (accesory dwelling unit). These are very common in our little tourist town. Some of them have a microwave/coffee pot with a mini refrig and some of them have a fully functioning kitchen with stacking washers and dryers. The rules are that they can only be 1/2 of the size of the main house up to 750 sq ft.

I spent 18 months looking for the right one that I can rent for now but in my later years I can have on property help without having to be in my house (every one's privacy). I interviewed several bankers/mortgage brokers and finally picked one that I felt was listening to me and had been recommended by others in the industry as someone the was good with FHA 203K loans. We set up for a FHA 203K streamline, I sent her all the information including pensions, tax returns & bank statements (I am retired) and I signed the needed docs for the loan. Inspection done, closing date set for 7 weeks later and all looks good. Things got crazy for 2 weeks and then an apology as she was adding to her staff and it took her a little longer than she expected for everything to fall into place. My agent and I did not hear from her about the appraisal date so the first of July I started by texting her as that is how we had been communicating, no answer then I emailed her, no answer then I left a message on her work phone, no answer. I finally got hold of her assistant 20 days before I was due to close by threatening to go on facebook for the lousy service.

The assistant then admitted to me that my broker had left the company 30 days before and that the loan I was to get was not allowed because the main house & adu were not connected (correct as per county tax site since 1953). New loan no 203K loan. Higher down payment. I will not use this company again. Fast forward the assistant's email now shows the brokers contact infor so I call. Now I have an appraisal scheduled in 2 weeks (fast this time of the year in my location) but now the assistant says that even if I live on the property I can not rent out the ADU as long as I have an FHA loan because it is a second unit. What???

I can't rock the boat or change mortgage companies at this point because if we close when we are now due to it will be 4 months to get the loan and close and the seller is not going to extend me again.

Please tell me that I just ran into a stupid assistant that knows nothing. 

My darling agent has told me that I have run into things that she has never seen in 20 yrs as an agent but at this point I deserve the house. BTW this was a off market that my agent found for me but started out with the owner living out of country and only spoke Hebrew. And it only got stranger. I am due to close by Sept 20.