Zoning Issue - Legal Non-Conforming

[Manoucheka Guillaume]

FHA rejected the purchase of a duplex because the area is zoned for single family. There are several other duplexes in the area. I spoke to someone in the city's zoning department that confirmed the area was once zoned for up to 2 units and the property can continue its existing use but it has to be rebuilt as a single family if destroyed.

Are there any other cons I should be aware of before purchasing any properties that do not comply with the current zoning ordinances.

The zoning complaince is classified as legal nonconforming (grandfathered use).

I am having a difficult time finding low down payment options for 2-4 unit properties besides FHA. Any suggestions?

Freddie Mac Home Possible and Fannie Mae Home Ready used to allow 5% down for multifamily properties. Any idea why this changed?