It's also illegal for cities to attempt to regulate fees related to screening or applications.

Here’s how it breaks down:- Normal Depreciation Recapture: Recapture is taxed at a maximum rate of 25%, regardless of REPS status, plus any applicable state tax.

The right lender will be able to advise you on what options you have after getting some info from you and taking an application. 

In some cases, exemptions or adjustments might apply for buyouts between co-owners, so it’s best to check directly with a local real estate attorney or tax advisor to confirm the exact tax amount and any applicable exemptions.

First, it is a good idea to have a mini-application ready to store any information.

Google search gives me these super wide ranges and mostly talking about adding a bedroom in a SFH, which I'm not sure if applicable to this situation of "moving/subtracting a bedroom from one unit and add it to another unit in a duplex". 

The standard to apply is quite simple: Did you accurately disclose the character of the down payment funds to the lender in the loan application?

Pay for 2 hours consultation time from an attorney experienced in contractor real property law (if you don’t know of an attorney contact me and I will provide a referral) to understand the specific applicable laws, the risks, and potential costs2.

it's probably just a matter of casting a wider net in terms of applications. 

In most cases, they learn of the transaction only when a Certificate of Occupancy (CO) application or a permit is submitted for repairs or inspections. 3.