Refi: Residential Use/Zoned Commercial - Posted by Tony S. in FL

import · January 10, 2004, 5:38pm

Posted by Wes on January 10, 2004 at 23:20:05:

I would get a few more quotes.
At the very least you should find some different terms to choose from that might be better for you.

import · January 10, 2004, 5:38pm

Posted by Tony S. in FL on January 10, 2004 at 18:38:58:

I’m looking at doing a cash-out refinance on a rental I own but my bank is insisting that I get commercial rates/terms since the house is zoned commercial.

The house is on a 4-lane highway and was recently zoned commercial. The neighboring houses have all been turned into offices. I’ve got mine rented as a residence and don’t plan on changing anytime soon (it’s in another state and I don’t want the hassle of trying to manage a major renovation from afar).

Is my bank being inflexible as I believe it is, or am I going to run into this with other lenders?

Thanks,
Tony

import · January 12, 2004, 1:12pm

Re: Refi: Residential Use/Zoned Commercial - Posted by wes

Posted by wes on January 12, 2004 at 14:12:45:

Gave your question more thought and made a call or two.

Washington Mutual in particular said they might do it if the property was termed “best use” is residential although it’s commercial.

I have had this same situation present problems with my borrowers. However, at this point it might be wise to call a couple more lenders and see what they say.

import · January 11, 2004, 11:53am

Do-Able - Posted by Les

Posted by Les on January 11, 2004 at 12:53:50:

Tony,

I just happen to have a lender that will do loans on non-conforming properties, such as yours. Drop me a line or give me a call: 443-528-0913.

Les

import · January 10, 2004, 6:05pm

Re: Refi: Residential Use/Zoned Commercial - Posted by Wes

Posted by Wes on January 10, 2004 at 19:05:13:

I believe you will have the same problem with other lenders.
Little more complicated than this but if property is now zoned commercial and something happens to the structure. It cannot be built back as a residential… That would create a problem for your lender…
Up side is your property should be worth more now than before…

import · January 12, 2004, 2:29pm

Best Use is Probably Commercial - Posted by Tony S. in FL

Posted by Tony S. in FL on January 12, 2004 at 15:29:16:

>>…Washington Mutual in particular said they might do it if the property was termed “best use” is residential although it’s commercial…<<

Well, the best use is probably commercial considering all the surrounding homes have been turned into offices.

But, in order to get that “best use” I’d have to put a lot of money into rennovation. The house is a small two bedroom. It was always the smallest and is now even more so since the others have been expanded and converted to offices.

I’ll give Washington Mutual a call.

Thanks, Wes.
Tony

import · January 10, 2004, 7:04pm

Re: Refi: Residential Use/Zoned Commercial - Posted by Tony S. in FL

Posted by Tony S. in FL on January 10, 2004 at 20:04:39:

Thanks for the reply Wes.

So I guess my bank isn’t being inflexible after all. However, they’ll only quote me a 6.25% ARM for “about 15 years” (their words).

I pressed them on the rate and they said “mabey a little better” because of my excellent credit rating.

Is this about what I’m going to find with other lenders also?

Thanks,
Tony