Fha 203k- Descrepancy in units on property vs with county

[Caroline Powell]

Hi there!

I have found a rental property that I would like to purchase using an fha 203k loan. 

here's my issue that I can't seem to Google my way out of.

The property is listed as having 4 units with the county but there are actually 5 units.  There's four 1 bedroom/1bath in the main building and a garage apartment with a 1/1.

I know fha 203k is only for 4 units.  However, I'd convert the 2 lower units to a 3/2 for myself and my children to live in.

Would the fha approval go off of what the county states, as the property only having 4 units?

Or would an appraiser do a new appraisal and put down 5 units blowing it?

Ive also researched here about covering 5 units to 4 and some have referenced you can change a 5 unit to a 4 or have it in your plans and still get an approval...

But others say no. 

Help!

[Paul Welden]

@Caroline Powell

As long as the final product ends up being a residential 1-4 unit property where the primary borrower intends to reside in one of the units as their primary residence for 1 year, then you can do an FHA loan on it ... including the FHA 203k.

The "listing" is merely an advertisement and is not always 100% correct. 

Hope this helps! 

[Paul Welden]

@Caroline Powell

Another thing .... make certain your selected contractor is very well versed on 203k's. Strongly consider using a Certified 203k Contractor. 

The 203k is NOT your normal rehab project because of the nuances, unique paperwork, timelines, payment structure, etc. that normal contractors struggle with. 

You're only as strong as your weakest link ... select your partners wisely

[Caroline Powell]

Thank you! This made it extremely clear.  And thank you for the info on finding a contractor!