House Hacking - 5% Conv Loan, Primary Res w Cottage - Not Poss?

[Michael Vialpando]

Hey Pocketeers!

My wife and I are making our first step from getting out of our early twenty mistake of buying a luxury home with land and moving into a house in downtown Colorado Springs. It will be our first stepping stone to building a portfolio of rental properties as we adopt the nomad lifestyle to acquire our first couple properties. 

Here is where we are getting conflicting information and worried about everything going smoothly.

We are buying a single family residence that has an accessory dwelling downtown where it is quite common for the old school mother-in-law cottage to be in the back. As I was shopping for lenders, some were very concerned that we would not be able to do the 5% down conventional loan and yet others are not concerned since the county website has the it recorded as a single family residence and a cottage. The lot is zoned C5 and not R2 so that confused me a little too. The property has two mailboxes and named the back house with another address number.

Anyways, how do we make sure we aren't going to have our whole master plan fall apart when we get to the closing table? I figured we were well on our way to financial freedom and now I'm worried a bit that we might not be able to fund the deal!

Here's a pic of the house: 

Thanks!

Michael

[Bill S.]

@Michael Vialpando you need to find a lender that has done investment / owner occupied loans. They KNOW the answer and can tell you the scoop. The search feature is helpful to locate people. Put in your zip code to find the ones in your area. You can then see the ones that have participated on the forums and see if they know what they are talking about. If that doesn't lead to satisfactory results, find another house hacker who bragged in the past few months and reach out to them and see who they used. Best results, generally come from a local mortgage broker who knows the investment angle.