For most loans with multiple borrowers, Fannie Mae will no longer use the representative ( = lower) credit score to confirm mortgage loans comply with their minimum 620 credit score requirement.

Get your attorney to see if there are any recent cases where you could be forced to comply with ADA standards other than the basic.If your tenant prospect is a Vet, check local veteran and boy scout organizations to see if they might help with some possible changes.Don't forget the Unions!

You can't have it both ways, and if you bring attention to the situation you'll probably just cause yourself problems.If I were you, and I intended to keep the 2 illegal units, I would probably provide the 7 leases early on in the refi process to establish "7 rental units" in the mortgage person's mind, and then just hope & pray that you don't get asked for a zoning certificate as part of the process.One other thing I'd say is that, again I don't recommend illegal units, but if you insist on keeping them (as many people do), I strongly recommend you comply with the fire code applicable to the number of rented units in the building.You mentioned two buildings, with a total of 7 units, and you said the building department had them as 3 & 2, which makes me think you have them rented as 4 & 3.If that's the case I would strongly recommend, if I were in your position, absolutely making sure that those buildings conform with the fire code for a 4-unit and 3-unit, respectively.

When entering a new market, how did you grapple with having your rental property comply with the  numerous building codes of your city?

New construction must comply with new regulations so they are not getting built unless they can charge enough rent to be profitable.So, if the new apartments rent for $2,000 per month and your rentals are $1,000, none of your residents are going to look to move to those new units.  

I only ask as I if the shoe were on the other foot per say and an outside investor asked me for referral credit on a deal if they were an agent, I would most likely comply.

Buyers still need to comply by their financing contingency terms, have an appraisal and structural inspection within the specified timeframes, etc. and could lose all of the money they put into those things, not to mention they're tying themselves up with a house that may not get sold to them.

They did not even give you a chance to remediate the issue.Check your local laws to confirm this complies.

That conversation should give you a better idea of whether they intend to comply or hold over.Side Note: I will never allow a post settlement occupancy to accommodate a tenant - next time just schedule settlement for after their lease is over.

If you're purchasing under an owner occupied loan - you probably have a time limit to move in to comply with your mortgage and/ or insurance.