FHA 203K: Single Family to Multi-Family (Usage/Zoning Change)

[John Winters]

Greetings BP,

I have been searching for my first multi-family property for nearly one year. I come across large single family residences in high-renter, multi-family areas. The renovation cost, particularly to put in the multiple units, is a bit over what I can and would like to pay out of pocket. I plan on using an FHA 203K loan and Live in one of the 3-4 units.

Has anyone here ever changed the property usage/zoning from single family to multi-family while using an FHA 203K, thus allowing a larger loan limit?  Is this possible, and if so, how would I approach it -- timing-wise?  I am considering one specific property at this point.  It likely won't last on the market long, and the owners just want to sell it; they do not want to change usage/zoning.

Any ideas/experience to make this happen?

I appreciate any feedback - thanks!

john