HELP- financing needed for two attached SFHs

[Account Closed]

Hello BP,

I quickly need your help and I'd love your advice on how to proceed with the pickle I'm in. Back in Nov '19 I signed a contract to purchase what I thought was a duplex. I'm planning on living in one side and renting the other. The contract was written by the builder's attorney who is also handling the title work and has both address' listed on the contract. Closing is June 30 and my lender JUST let me know that I need two separate contracts to move forward with them since it turns out these are two attached SF homes (not a duplex), with two lots, two parcel numbers, etc. My problem is that when I asked for two new separate agreements, the builder told me the price would increase somewhat significantly since he would have twice the costs to pay at closing. I guess this makes sense.. anyways, I need advice on how to obtain financing on the existing contract I have in place. Is this even possible based on fannie mae's guidelines? From my understanding, it's a specific underwriter's policy to require two contracts in this situation and it's not the law so to speak. I'd appreciate any and all feedback and let me know if I need to clarify further on any of the above. Big thanks in advance!!

Scott

[Andrew Postell]

@Account Closed just to reinforce the above, Fannie/Freddie will require two separate contracts BUT your downpayment will also change.  Meaning, you will have 1 contract for your primary home - at 5% down - and the 2nd home, since it is not your primary home, will require at least 15% down as a minimum.  So if you were expecting to bring 15% down because you were buying a duplex, then you will now need less out of pocket.  But if you were using a special program where you were only needing 5% down to buy a duplex....that option will be out.  Hopefully, you get the better end of the deal here.

Feel free to ask anything additional if you need.  Thanks!