If the discussion goes into there are so many non conforming units, so let's up zone.

Square footage plumbing, electrical, stairs all need to conform with local codes and tiny homes fall primarily under the category of a RV since they do not meet conventional codes.

I am just a HML guy.. all the back end deals of conforming mortgages always escape me..

You can have up to 10 conforming loans in your name.

You can get 20 percent down with a conforming loan and secure a great rate, or utilize FHA financing with only 3.5 percent down.

There, @ian reeves said he had zero seasoning by using a commercial loan.Elsewhere, there are banks that will do 6 months seasoning and it seems to still be a "conforming" loan for them.

My lender @Chris Mason called me today to inform me of something incredible:Apparently all the mortgage insurance providers he is aware of are suddenly no longer offering mortgage insurance for super conforming Home Possible loans.Who is currently offering mortgage insurance for super conforming Home Possible loans?

So it is possible and likely that 90% of 2-4 units you look at are in RS zones and considered "legal non-conforming"You are right, do alter it or increase density you need the alderman to change it to RT which will allow for 2-4 units and expansion.If you do not plan on altering the footprint you should not be concerned if it is RS

I think part of the reason they are selling higher is because they are a popular option for househacking especially because you can get traditional/conforming mortgages on them, so people will pay more using FHA, VA or low downpayment conventional loans.

@Elisabeth Greer - conforming loans have the same qualifications, so if he can't get qualified at one it is likely he can't get qualified at another.