Can't finance duplex due to 2 separate structures?

[Stephen Schoon]

Hey all, 

I'm offering on a property (in columbus oh) and my finance guy says he can't lend conventional fixed rate because  it's a non-conforming property.  It's one lot, residential, with 2 separate living structures on it.  While, I understand what he's saying, I've never heard of this being an issue before.

Was hoping for some insight. Thanks!

[Chris Mason]

Hi @Stephen Schoon,

Stop calling it a duplex. Call it a "single family residence with a detached accessory dwelling unit."

And then, in my market at least, the appraiser says "SFR w/ detached ADU, permit status unknown, which is normal for this market and has no impact on value or marketability, the work appears to have been done in a workmanlike manner" and we're good.

But, I don't know Ohio. Maybe in Ohio that DOES have a negative impact on value and marketability. 

Lenders should know how to translate from normal human-speak to the mystical language of underwriting guidelines. In this case, I'd suggest give him a call and help out with the translation to jog the brain by using the phrase "single family residence with a detached accessory dwelling unit" and see how the conversation goes from there.