Conventional Loan for Home with Commercial Zoning?

[Matthew Lindsey]

Hi,

I am selling a single family home that the city rezoned years ago into a commercial zoning. We have an offer on the property but my agent just stated that the buyer is wanting to use a conventional loan and she is pretty sure than Fannie Mae and Freddie Mac will not loan on properties with commercial zoning. Im not sure if it will change anything with a lender but the City can/will issue a letter stating that the property is grandfathered in as residential but does have commercial zoning (if the house burnt down, you could still rebuild a house with the same footprint).

Does anyone know if this is correct and if so, is there anyway a buyer can still use conventional financing? The buyers want to use the home as their personal residence.