Question
Can I refinance a duplex I bought as a single family home but didn't officially change it over?
I bought my single family home 3 years ago in MS with a mortgage from USAA. Last year I remodeled the front of it to be a 450 sq. foot studio apartment (put in a new bathroom, walled it off from the rest of the house, etc.). I didn't tell the city or the bank. Anyway, I have tenants living in there now and they pay $620 a month. I cover all the electricity and water since I didn't put in separate meters. Well, when I called USAA to get a refi, they send an appraiser who noted the new format of the house. They then told me I can only get the refi if I turn the house back into a single family or apply for the zoning permits/separate meters with my city. Do you think another bank would give me the refi as is? Can I call my tenants "roomates" and do it that way? What other options do I have? Would a private lender do the refi as is noting that I now have cash flow? Thanks for any help you can give me!
3 weeks ago - 2 answers
Best Answer
Chosen by Asker
Get legal and then apply. By the way, you *have* been reporting your rental income on your taxes, right? You cannot call your tenants your roommates. No lender will touch you if you are lying on those forms as well.
by the tax lady
3 weeks ago
Asker's Rating: 
Other Answers
Actually, nobody can tell you what to do with your property, and if you have IMPROVED it's income potential, then you have a good chance of being able to name your interest rate. Sounds like you've done well for yourself if you can keep renters in.
by Liberal AssKicker- 3 weeks ago