Some states may not recognize or fully conform to the federal provisions.

@Louie Masters - I just got a 2/1 with 2 more non conforming in the basement for 83k right next to the college.

There are conventional and conforming loans that can get the job done depending on employment and credit profile.

The difficulty in getting financing is that the way they are built they do not conform to standard building codes and banks will not finance as with conventional homes.

Non-conforming uses can also cause headaches if local regulators ever get wind of it or if you go to sell the property and misrepresent it's intended use.

Hi Kim Handelman With no income you may have better luck looking at something with more than 4 units, so it would fall into the commercial loan category as opposed to conforming residential loans.

If folks are using a conforming lender to buy properties they are transferring the title to their LLC. after everything is stable...

Then again, I can't get a traditional conforming residential loan either.

It is for any Fannie/Freddie conforming loan - which is about 90% of all residential loans.  

I agree with Nathan,Properties should conform with the market the property is in, no more no less.In my experience i deliver a good, functional, clean and livable product and haven't had any problems.However, like i learn in my days as a car dealer...