Legal In-law Or A Two Family?

[ginadirocco]

I'm unsure how much more I can describe it. In the report I state: The subject is a 32 year old cape style dwelling in average condition with a new attached 3 room in-law unit in good condition (not included in GLA).

I also stated: The in-law improvement on the property were built under a special permit and may be occupied by only family members.

What more do you think an UW needs to hear? I'm stumped. Should I obtain a copy of the zoning regs for the town and include them as a 350 page addendum (hmmm. . . now there's an idea!!).

 

[Chris Harrison]

I'm sooooo embarrassed :redface:

I didn't catch the attached "with basement".

If there is no access from the main home it would still be considered a 2 family home or service quarters for nanny, gardener, etc. If it's above grade and attached it is GLA .....just like Ben and Pam said .....

:redface: Chris :redface: :redface:

 

[ginadirocco]

Ben,

You've got it. It is a separate "apartment" and that's why I didn't include it in GLA and gave it nominal value. Fortunately, there was a sale (albeit over 6 months and 2 miles from subject) of a similar type of property, and it turns out that the in-law unit did have very little value. Its presence didn't appear to reduce the value of the main dwelling, which is what I thought may happen.

 

[Pamela Crowley (Florida)]

Gina,

With your last post, sounds like you've done your job correctly. It's now a LO and UW problem to find the right loan program for this unique property.

NOT your problem anymore!!!!

Stand your ground.

 

[Ben Vukicevich SRA]

Gina,

Somewhere in FNMA regs there is a statement that allows a two unit property to be placed on the URAR when the second unit has insignificant value/no rental income. You may want to look that up and refer the underwriter to it. That should solve your problem

You have done your job correctly

Ben

 

[Phil Rice]

A possible compromise to make everyone happy:

Keep the report that you did on the URAR and add some 2 family comps as comp #4 - #x (ask how many they think they need), and adjust the multifamily comps back to the same market value.

I have run into the 2 kitchen problem several times, and I get Underwriter questions/problems too. Seems to me that whatever I do is the wrong thing, they want something different.

I have adopted the attitude that I will add as many comps as you like, but I charge extra for the additional effort. My clients don't seem to mind the extra charge, they pay with no complaints.

In this area, the charge for a multifamily report is about double the URAR.

 

[Pamela Crowley (Florida)]

Phil,

I think you've hit the perfect solution! Thanks!!!

 

[ginadirocco]

Phil,

Is it ok to use 2-family comps even though the subject's use is not legally permissible as a 2-fam?
-G

 

[Ben Vukicevich SRA]

Gina,

You always compare "like zoning" to "like zoning"

You're doing it correctly.

Ben

 

[Pamela Crowley (Florida)]

Gina,

Provide them, explain they are being provide per UW request and are not considered comparable as the zoning is different than the subject, charge plenty for providing them, give them NO weight in your final value reconciliation.