Commercial vs Residential: unique lending situation

[Anthony Weiss]

I'm working on closing a single family home on 12 acres. Part of the property is zoned industrial/commercial, however, the part with the house is zoned residential/single family. The issue, an appraisal was just completed and the appraiser is saying the property is commercial, and therefore, the lender is saying I would need a commercial loan.

Has anyone had a similar experience or maybe a lender here has worked on something like this?

The property has the separate zoning because the owner was wanting to conduct outdoor events and the City wanted to place a greenway easement on the property, thus they agreed to rezone that piece.

It seems to me since the improvement piece of the property, the main collateral, the house is zoned residential then the appraiser and lender would deem the purchase as residential.

I'm not sure if convincing can be made otherwise or if a different appraiser/lender could come to a different conclusion.

This property would not meet commercial lending requirements. This is to be my primary residence.