All systems must be installed in conformance with the manufacturer's specifications and with all applicable electrical and building code standards."

If you do not have all conforming R-1 lots, you would need to seek a zoning variance for each lot that would not be conforming.

Most of those response are based on the idea that the property was a legal non conforming duplex so similar but not quite my situation.  

.  Purchase and installation of appliances including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens  Minor repair to exterior decks, patios, and porches  Minor basement waterproofing  Window and door replacements and exterior wall re-siding  Other minor repair(s) as indicated by the appraiser as being cosmetic in nature and conform to HUD's repair escrow requirements.Hope that helps!

Just curious, why go with a commercial loan versus a conforming loan with lower rate and 30 year term?

So since the lender wants to sell off loans rather than keep them in portfolio, they need the loans to conform to Fannie Mae and Freddie Mac standards.

Naveen,Based on my experience, this is called legal non-conforming.

Unless your bank is holding the note, they'll likely have to conform to this guideline.

Double check with HUD as well, I thought the occupancy with HUD was 2 people per room, so in your case, it would be 8 if the 4th room was legally conforming if it's not a conforming room it would only be 6.

That's an overlay and not a conforming guideline