Having trouble finding financing

[Benjamin Selez]

Hey all I was wondering if someone could shed some light on my situation.

I have an offer in on a home and I'm having a very hard time finding an underwriter who will touch the property. (This is for a primary residence)

Here are the issues:

The house is in a C1 zoned area (neighborhood commercial.) The house itself is zoned as R10 Single family land use. The previous owner (possibly illegally) moved the kitchen to the 2nd floor and operated an insurance agency on the first floor. The house also has an "in-law" suite with separate utilities but the home is not zoned as a duplex.

Because of these issues it appears that no bank will commit to underwrite this for an FHA loan.

Are there other loan paths I could take with a property like this? I can afford a higher down payment. Definitely 10% and possibly 20% down.

Thoughts?

[Neil Aggarwal]

Originally posted by @Benjamin Selez:

The previous owner (possibly illegally) moved the kitchen to the 2nd floor and operated an insurance agency on the first floor. The house also has an "in-law" suite with separate utilities but the home is not zoned as a duplex.

Look for a different house.  Why buy into something that could violate codes and zoning and has the potential for a huge problem.