Fourplex Under Contract - but not sure if it will appraise?

[Jeff White]

Hi All,

I'm currently have a fourplex under contract here in Denver using FHA financing for 630K, and it appears to be a fourplex with four different entrances, plenty of parking, four kitchens, four bathrooms, and such. It is plenty big at 3,652 total sqft (1,826 sqft above ground and 1,826 sqft below ground). Four 2/1's.

According to the seller and listing agent, it is a fourplex, but when I go check the city and county of Denver page, it shows it zoned as multifamily or E-TH-2.5, which from my understanding is basically a standard zoning for multifamily.  But under property type, it is labeled a "Residential Duplex". 

Also, the two bottom units are basement units with no egress windows (only small 1960s windows).  

My concern is what the FHA appraiser will say? Will he say it is a fourplex and appraise it as such and for close to the asking price? Will he look at assessor records and use that as fact for determining fourplex or duplex? Or will it be a duplex and then appraise for a much lower value (like 400K) thereby potentially killing this deal? Will I have to get it rezoned to get a loan?

That's my concern right now. 

Thanks guys!