Residential vs Commercial zoning

[Sachin Amin]

Hello Experts,

Background: we are working on a 8 unit deal (2 parcels x 4 units on each building) - we thought this would fall into residential loan and we almost completed the paperwork, but the lender came back stating they cannot proceed forward because the zoning is classified as commercial. lender is asking us to work with listing agent/owners get it re-zoned as residential. (don't think we have time or knowledge to pursue that) . alternatively the lender has asked us to work with a commercial lender.. we have not done any commercial loans so far, but basic research provides core diff is the 30 yrs vs shorter duration 10-15yrs in commercial + ARM (floating).

Do you think its worth spending time rezoning by working with owners/listing agent or just get on with commercial loans and close the deal and deal with re-zoning once we own it for future purpose. (is it OK to not re-zone at all?)

Cheers,

Sachin