Property Appears Residential But Is Zoned Commercial

[Hunter Hughes]

Hello Forum,

I am currently working on a deal for a Colorado property that by most common sense would appear to be residential. It has 26 units (Apartments & Trailers) on the 1.68 acre lot. However, the MLS indicates that it is zoned "Commercial."

I would prefer to get a residential mortgage loan on the property because of favorable interest rates. Plus the bank I work at only funds conventional mortgages. If I borrow from my bank, I can achieve better rates and reduced closing costs. WIN!

How should I proceed? Should I work to get the property rezoned? Must I look into a commercial property loan with another lender? What more can I do to enhance the financing on this deal?

Thank you!