Two Houses on the property. Mortgage guy says it won't pass FHA

[Joshua McKenzie]

There's an acreage with two houses on the property. It's rural. My mortgage broker says that there is almost no chance that the property would go for FHA simply based on comparables. But from everywhere else I've been reading, as long as I am owner occupying that shouldn't matter, right? Do I need to find another broker?

[Patrick Britton]

@Joshua McKenzie i think you're mortgage broker is wrong...there is NO CHANCE you'll get FHA financing on a property with 2 houses. It's not just about finding comparable properties since zoning will be especially impactful in this scenario, but also (and your lender will be able to find the rule) I'm 95% confident that Fannie Mae's guidelines for FHA loans require 1 improved property per tax parcel.

you might have more luck with a local portfolio lender like a credit union, but 2 houses on a single lot is extremely problematic in the vast majority (NOT ALL) cases.  of course, then you're looking at not less than 5% - 10% down payment vs. 3.5%...:(