Residential financing for two SFH on one parcel

[Account Closed]

Hello,

I am a first time investor looking to house hack a duplex. I have identified a property for sale that has both units occupied, with one tenant month-to-month.

Even at the seller’s asking price, this property has an attractive cap rate and rent-to-purchase ratio, using very conservative estimates for rent per sqft in the area.

Both units are livable and could pass an FHA inspection, but a cosmetic update may be in order. I have FHA financing (3.5% down) for up to $50,000 more than the seller's asking price.

Here’s the catch - this property is two single-family ranches on a single parcel.

Once my lender noticed this, they said I cannot do a residential loan and would instead need commercial financing, which they do not provide.

So, I am looking for one of two options:

1. 1. A way to find a commercial lender who will finance a parcel with two single family homes, one of which will be owner occupied, for around 8% down (10% absolute max).
2. 2. A way to find a residential lender who will finance a parcel with two single family homes, one of which will be owner occupied, with an FHA 3.5% down loan.

Thanks in advance. I would hate to see this great deal go by just because the two units aren’t physically connected.