All Forum Posts by: Katie Stroman

Thanks for your response! The ADU is already in place from a previous owner and the town already has it on record. I have been told that it can not be rented out but I did read in the code for the zoning specifically for accessory dwelling units that I could have an employee, caretaker for watchmen live there. The rules are so strange to me.

I recently purchased a SF home with an ADU. One owner used it as an in law suite and another as an office. It is fully functional with a full bathroom and kitchen and over 700 square feet of living space.

I've been told by the sellers agent and a neighbor that has lived on the street for 30 years that it is not permitted by the town to be used as  a multi family and is highly unlikely that they would ever approve it for that use. 

My question is does anyone have experience with renting out "illegal" units? What are the consequences? How do they prove that it's a rental? What if you rent to a friend and they pay you cash. Wouldn't it just appear as if you have a guest? How do they prove that you are renting? 

Thank you for any insights. New to this and want to do a house hack but also concerned because I don't want to cause any trouble. 

This is helpful, thank you! So how do I go about finding lenders without the strict overlays? Just keep calling different ones and asking them specifically if they count SF with an ADU as 1 unit not 2? Should I focus on banks or Mortgage brokers? Are you licensed in PA.?

Thank you! I've talked to several lenders. I've been told that it's not possible to it's a gray area to we won't know until the appraisal comes back.  Not sure whether to take a chance or find a "true single family". Definitely interested in finding a way to create some cash flow where I live and felt this would have been perfect for that however I do need a co-signer and I don't have a large down payment. If you know of anything please let me know. Thanks!

Thanks however I will be using my parents as non-occupying co-signers. I have read that all co-signers using the Home Possible program must be using the property as their primary residence. Correct?

Thank you for the info. I called the county assessor and the property is registered as a single family with an ADU. The apartment above the garage in the ADU does have a permit from the township to be occupied/rented. I was told by an appraiser and mortgage broker that having a Legal rental unit on the property makes it a 2 unit property. Do you know something different? Thanks!

Looking to buy my first property and will have my parents as non-occupying co-signers (I will be occupying the home though). Looking at the Home Ready program through Fannie Mae. I understand when having non-occupying co-signer on a 2 to 4 unit property you need 15% down. My question though is how do they determine what is  considered multi family and what is not? I'm looking at a property that has R2 zoning it is listed  as a single-family with an accessory unit in the public records. That accessory unit is a four car detached garage with a two bedroom apartment on top and does have a permit from the township to be occupied. It also has separate utilities but shares the septic system. Could  this come back as a two unit property in the appraisal therefore causing me to put down 15% instead of 3% ? Every lender I've talked to has said it's a gray area and that we won't know until the appraisal comes in. Thanks in advance for any advice/insights/personal experiences.