Sonoma County Mortgages

All financing provided by New American Funding

(707) 217-4000 | Prequalify Now
  • Home
  • Purchase
    • How Much Down Payment To Buy A Home?
    • How Much Income You Need To Buy A Home
    • How Much Should I Save For Buying A Home?
      • How Rates Affect Payment
    • No PMI Mortgages
    • FHA Loans
    • Sonoma County Disaster Loans
    • Jumbo Loans
  • Refinance
    • Mortgage Rates
    • Does It Make Sense To Refinance?
      • Get Your Refi Paperwork In Order
    • How To Pay Off Your Loan Faster
    • How To Remove PMI
    • How Lenders Price & Quote Loans
  • Loan Programs
  • Payment Calculator
    • Mortgage Affordability Calculator
  • Blog
  • Videos
  • Scott Sheldon
    • Scott Sheldon
      Senior Loan Officer
      NMLS ID# 287389
      Direct: 707 217-4000
      Scott.Sheldon@nafinc.com
      Specializing in Residential Home Loans for Primary Residences, Second Homes, Investment Properties, Single Family Homes, Condos, PUDs, 1-4 Units.

Get Your Latest Rate Quote Now!

Why your granny unit might ding your mortgage application

December 17, 2020 by Scott Sheldon

Share on Facebook
Facebook
Tweet about this on Twitter
Twitter
Share on LinkedIn
Linkedin
Pin on Pinterest
Pinterest
Email this to someone
email
Print this page
Print
Why your granny unit might ding your mortgage application

People trying to refinance their mortgages to take advantage of favorable current market conditions might come to realize they have a problem with their house. A granny unit can be a wonderful opportunity to maintain a mortgage, drive affordability as part of the broader budget, however, if it’s not done in the right way, it can come back to be problematic. Here is what to know…

First things first mortgage companies must follow Fannie Mae/Freddie Mac guidelines. For our purposes, we’re going to talk about single-family residences with granny units, not multi-family properties. So if you have a single-family residence and you have good cash, credit and income, and equity in your home you can refinance your mortgage loan.

Financing a single-family residence with a granny unit should not be a problem with most mortgage companies. Here’s where things can become extremely problematic, more than one granny unit. More than one in-law unit coded as a single-family residence does not conform to Fannie Mae’s guidelines. Most extra granny units such as converting a garage to a granny unit or putting up a wall and creating another unit are not done on a permanent basis, they’re typically done off the record, as a result even if they’ve done in a workmanlike manner, and even if they’re done legally, for the purposes of getting a mortgage it does not conform. So if you have a single-family residence with a granny unit keep it that way adding an extra granny unit will more than likely make your property ineligible as collateral for the mortgage loan.

When selecting a mortgage company, be transparent tell them what you’re property is. One caveat to this conformity rule is the subject property is a legitimate multi-family home, a legal two, three or four-unit property.

Looking to get a mortgage? Get a no-cost quote today!

Related Mortgage Advice from Scott Sheldon

  • Mortgage Application: Pulling Credit Report

    Taking out of home loan? This might surprise you, pulling credit associated with the mortgage…

  • Why your mortgage loan application might be delayed
    Why your mortgage loan application might be delayed

    With interest rates being at historical lows more and more people are applying for mortgages…

  • Why You Should Work With Scott

    "Dear Scott,We wish to thank you for working with us to obtain our home loan.…

  • fannie made change to home appraisal covid_19
    Why harp refinances are dwindling

    One of the financial programs aimed at homeowners wishing to refinance in the economic downturn…

Filed Under: Uncategorized Tagged With: buying a house, FHA Loans, Harp 2 Refinance Program, how to buy sonoma county real estate, Low Rates, mortgage rate quote, shopping mortgage rates, sonoma county home buying, SONOMA COUNTY LOANS, sonoma county refinancing

SCM on Zillow

Zillow Reviews for Scott Sheldon, New American Funding

SCM on Facebook

SonomaCountyMortgages.com

Location & Contact

Scott Sheldon, Senior Loan Officer
NMLS ID# 287389
1450 Neotomas Ave Suite 115
Santa Rosa, CA 95405
1-707-217-4000
Email Us!

Copyright 2019 SonomaCountyMortgages.com · About Us · Sonoma County Loans · Privacy Policy · Terms Of Use · Legal · Site Map

NMLS Consumer Access © New American Funding. All rights Reserved. NMLS ID#6606.
Corporate Office 14511 Myford Road, Suite 100, Tustin, CA 92780. We at New American Funding take great pride in our customer service and make it our number one priority. We encourage you to contact us for complaint resolution or any post-closing questions you may have regarding the servicing of your loan. We strive to have your experience with New American Funding a stellar one. In the rare case that our service did not meet your expectations, please call our customer care hotline at 1-800- 450-2010, ext. 7100 or you may contact us by email customerservice@nafinc.com. Please leave a detailed message and we will follow up with you no later than the end of the next business day. If you are using a screen reader or other auxiliary aid and are having problems using this website, please call 800-450-2010 Ext. 7100 for assistance.

State Licensing | Privacy | Terms of Use | Electronic Consent Agreement

Connect With Scott In Your Inbox

Looking for a home? Real estate insider? Get connected with Senior Loan Officer Scott Sheldon. Scott stays updated on the latest in the mortgage industry, so you can stay updated with him!