Next thing you need to do is check the wiring for the property, you might need to rewire to conform to a multifamily property.

B.Seller Financing: The balance due to Seller in paragraph [where ever sales price is] will be evidenced by promissory note (substantially conforming with “FNMA” standards) from Buyer, secured by a valid purchase money __first__ second __third position mortgage or deed of trust on the Property and delivered by Buyer to Seller dated the date of closing.

Average price in this area but they list it as a 6 bedroom with 2 non conforming basement rooms, so actually a 4 bed 3 bath house with a nicer shed/ workshop in the back yard. 

I doubt very seriously if you would be able to do it on a conforming loan (Fannie/Freddie/FHA backed) - typically in your own name, amortized over 30 years.

The problem is the subject property has a vinyl frame exterior and all the comps have brick exterior, and because of this doesn't really conform to the rest of the neighborhood.

If it is zoned in a triplex zoning district but is a quad and the town has issued a certificate of occupancy for four units than it is a legally non conforming use and you should be okay.Basically, you need to check with the town and make sure it is legally operating as a four unit building especially if you suspect they may only have authorization for 3 units.

So-called conforming lenders (consumer lenders) will not loan to anyone other than natural person(s).Originally posted by Vincent Falcone:6.Since REO properties have already been foreclosed do I have to worry about other liens/ second mortgages or does the bank disclose that info.REO properties should come with clear title (no liens).

Problem is that I am paying 24% down to get a loan amount less than 417k which lets me use conventional interest rates instead of super conforming rates(+0.3% to 0.5% higher).

Generally using a non conforming contract is a bigger risk if you are a seller than if you are a buyer.

If your house is non-conforming with the neighborhood, it could affect it's resale value.