Is it still a duplex if rented as triplex?

Good Morning! If the appraiser details the property as a Tri-Plex, that's how it will be viewed in Underwriting. Also, the 3rd Unit must be legal and if not, something may need to be removed (such as a sink and/or appliances) prior to getting financing. If you are looking to get financing, FHA Insured Financing will allow for a 3.5% down payment on 2-4 units if you are going to purchase as an owner occupied. The only difference will be with reserves, as you need 3 months of PITI for 3 & 4 units in addition to the required down payment. If I can be of direct help, please let me know as our company is a Nationwide Direct Lender! Thank you!

You may have answered your own questions. It may be a legal, non conforming 3 unit home. That means that the CURRENT 3 units don't conform to current zoning requirements BUT because the three units you have existed BEFORE the zoing laws were changed, your 3 untits are GRANDFATHERED, making them all legal. This all needs to be confirmed with the zoning officer in your municiaplity. The way this relates to your refi is another story. If you are grandfathered in, the appraiser will note that the third unit is a legal and nonconfoming use. There is nothing wrong with that. However, if you are using the rental income to qualify for the loan you have two issues. 1. you need to have a 2 year history of recieiving rental income in order to use it to qualify. You would to to show the rental income on the last two filed tax returns. If you don't have the two year history, you cant use the rental income making the second point below a non issue. 2. If you can use the rental income to qualify, the underwriter MAY restrict that income to 2 of the 3 units. The logic is that if the home were completely destroyed and you had to rebuild it according to CURRENT zoning laws, you would only be able to rebuild 2 units not 3. You can call me with any additional questions at 866-970-3400 x-5135. Joe Shamie

I would think that if you have a triplex, and it's in the county's registry as a triplex, and it has 3 addresses, then more than likely it's grandfathered in.. in any case, the appraiser will note that it's a triplex.. as far as valuation, if the only comparable in the area are duplexes, then it probably wont appraise for much more than those duplexes in the area.. the underwriter will have some questions though.. since the title report will detail the zoning and property use... if you have not already, you should be talking to a local mortgage broker.. one who is familiar with financing multi unit properties... also, 1-4 units are usually priced the same and down payment requirements are usually the same.. some lenders might require a higher down payment, but the conforming guidelines do not.. again, another reason you should be using a local mortgage broker.. not the bank on the corner.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

It have to be legal unit

Yes.

You indicate the property is legally a duplex. The problem I foresee is that once the appraiser looks at this set-up, are they going to call it a tri-plex or a duplex??? While legally a on paper duplex, if it is clearly used as tri-plex, then this is going to present all sorts of underwriting problems.

Do you have a legal CO for the the third unit?

You can supply your 2012 Federal Tax Return to show income and a Year to Date Profit & Loss for the property as well. Leases are not always requested as you could have a tenant with just a month to month agreement or even a verbal agreement!

It would depend on county records, meters, and what the appraiser identifies it as. Sounds like a duplex with one unit having Boarder unit. There would have to be comparables that would have a 2nd kitchen on the one unit to establish marketability.

This sounds like someone added a "mother-in-law" unit to the one side sometime in the past. You need to talk with a licensed lender there in Oregon to get things worked out most effectively. I would suggest contacting my sister office of Bay Equity at: 503-914-7732.

If downstairs has an operational kitchen (stove/oven) it is a seprate dwelling unit for purposes of an appraisal.