Mom bought a 3/2 home (California) with a detached one bed, one bathroom unit, that we believed to be permitted as such, as the MLS listing "description" described as "The guest house is a 1/1 and includes it's own indoor laundry, single car garage and updated kitchen with granite countertops," however, it turns out the 1/1 was only permitted as a shop with a bathroom, and was never permitted as an Accessory Dwelling Unit.

The asset is being coveted even more.  

The main pro of finishing College would be the coveted degree I could attain that would hopefully provide a safety net incase disaster struck, however, college is expensive and many will get a degree only to realize it isn’t doing them much good.

Is it zoned multi-family or a single family with an accessory dwelling?

Example: you have $50K to rehab the house. your draw request says that you will spend $12,500 for "cabinetry", $9,500 for "bathroom accessories", and $10,000 for "decorations"... but you go ahead and start changing the plumbing, electric, and put a new HVAC.... well, the bank wont give you any money until you get to the $12,500 cabinets, or the $9,500 bathroom accessories. 3) The bank will keep 10% of each draw until the end. 4) The contingency reserve can be requested at "anytime"; HOWEVER, Unless your bank feels the changes in the work were necessary, they wont give you the money till the end.5) Choose right your contractor before the loan closes...

I only see how this could be useful if you are refinancing a home you already own or buying the next one.This is the pdf from Fannie Mae with more information: https://www.fanniemae.com/content/fact_sheet/homeready-boarder-accessory-unit-income.pdfAny guidance would be helpful.

@David Fairall I did not split the meters on my basement, but the city did not require me to do that in order to make it a legal accessory apartment.  

First, the property is not approved to have an Accessory Dwelling Unit.

I am also hoping to find a house with a possible accessory apartment that I can legitimize and use the rent to reduce my costs. 

My current servicer has the property as a single-family in their system, might I qualify for single-family terms by describing the detached garage duplex as an accessory dwelling unit?