Problems financing 2 buildings/separate dwellings on 1 lot?

Question

Property:  3BR single family house with a separate 2-car garage + 2BR apartment above.  2 separate buildings only a few feet apart on 1 land parcel.

I am buying this property as an investment with 25% down payment and don't expect to have any problems.  However when I sell in the future, can this setup (2 buildings on 1 lot) present a problem for a buyer who will be an occupant of only 1 building and who will be putting down small down payment with FHA loan?

Thank you!

Joshua Fulenwider · Answer

Since no one else answered you I hope I can be of some help.  The real answer is: it depends.

I, personally, have been able to secure conventional financing on properties similar to what you are describing.  However, its been a couple years and lending rules are constantly changing.  That being said, I believe most of the time that conventional loans cover 1-4 family dwellings which has historically included those with mother-in-law cottages (kind of like what you are describing).

The big thing to keep in mind is that lending rules are constantly in flux.  What is true today may not be true when you go to sell it.

The bigger issue with this type of property that I have had is insurance.  Typically this set up has required me to have a separate insurance policy for each building.  Both policies need to have your lender listed as mortgagor.  Just thought you should be aware.