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refinacing problems with zoning changes?

Posted on: 18th Feb, 2008 11:54 am
my husband and i took out a second mortage 10 years ago when our property was still residential zoned. since then as the city is expanding towards us our home is now zoned residential/commercial property. we would like to refinance into one mortage but cannot find a mortage company that will touch it due to the commercial zoning now. to me this is so unfair as it is not our fault that the city is moving this way. any suggestions?
Hi Sandrajean,

Welcome to the forum.

Property zoning depends on the Jurisdiction of different county. Now as your property zoning has been changed, I think you may file a petition to the zoning board of your county to rezone of your county. Contact with your attorney and watch out if this is possible or not.

Thanks,
Larry
Posted on: 18th Feb, 2008 12:46 pm
The risk to the lender is that if your home gets destroyed the local government may not allow it to be rebuilt the way it is. You will need to get what is called a "Rebuild Letter" from the City or County - whoever did the zoning in your area.

Once you have the Rebuild Letter you should be able to find a lender - in theory. You may need to contact more than one lender before you find someone who has experience with this. Most lenders are taught that if a property isn't zoned residential then the loan cannot go through normal channels. But if you tell your lender you have a Rebuild Letter and you otherwise qualify they should be able to check with an underwriting manager to approve your loan application.
Posted on: 18th Feb, 2008 03:28 pm
Welcome Contact.

Don't you think rebuilding the property would take much time and costs as well? I think if the poster's home is destroyed due to zoning changes, then it is better to shift to a residential zoning area instead of spending so much and again rebuilding property.

Thanks.
Posted on: 18th Feb, 2008 10:50 pm
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