My dream house is zoned C-1 (commercial). What can I do?

[Matt Hegedus]

Hey everyone,

After almost a year of searching, I have found a house that meets my needs (4 garage bays), in an area close to where I work.

The zoning is really throwing a wrench in the purchase. The one seller has passed away and the wife, who is in a nursing home, has signed over Power of Attorney to a woman I'm having trouble locating (no relation to seller, possibly a court order)

My agent says I won't be able to get a conventional loan on the place, given it is zoned C-1 (light commercial). The listing agent says I will be able to, and wants to go ahead with the purchase agreement. What do you think?

I really can't afford a commercial loan given my budget... I have enough to pay 5% down plus all closing costs and inspections... but not enough to pay 10 or 20% down.

All the ordinances from the county website make it seem like I can't even LIVE in the home, given it is C-1... although the sellers lived there for 61 years. So I'm not so sure how strict they are.... still though, this seems like it will have an impact on financing. Any ideas? Plan of action I can take to purchase this primary residence?

Thank you.

[Seth Borman]

A legal nonconforming building is not a problem. You may need a letter from the city explaining the situation, at most.