I read that you are able to take advantage of residential conforming mortgages on properties held in a trust as long as you are the beneficiary but I don't know if there is a way for them to see how long you've been the beneficiary? 

., sometimes you luck out and can find proof of the extra unit existing before the introduction of zoning, in the city archives), however it is rare.Usually the issue is that to go up a unit you need to conform to current building code, including lot size and parking, and the lot just isn’t big enough according to current building code.

The 4 unit conforming loan limit is higher so you would only be out 20% for higher quality while giving you peace of mind of maintenance free living.

Another concern I have is, I do not have a lead certificate of conformance for the property.

@Michael HoodWell... lots of it does come down to the numbers... pre-covid the min conforming loan amount was $50k. 

But, its a fannie mae requirement (you can google it) so it affects all conforming loans other than fha.If your credit is strong, the PMI is cheaper than MI because the private market is more willing to take the risk on you so the rate is lower. 

The Federal Housing Finance Agency (“FHFA”) announced the new maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2021.

And when I've talked to the planning department in Arvada and Littleton, they both indicate that anyone who's doing it legally would be considered a legal non-conforming use in the event they rescind the law allowing it.We have a case study for this in Colorado Springs which passed a law in late 2018 to allow Airbnb in non-owner occupied properties and then basically outlawed it in late 2019.

Also, a 7,500 sf parcel prior to adjustment that becomes 5,500 sf after, may not be conforming to the current zoning, etc.Agreed that the neighbor needs to write the check(s) to resolve rhe problem. 

Is this now commercial property for refinancing?