Refinancing primary residence that is also used for elderly care

[Jonathan C.]

Hi BP,

Can you refinance a primary residence that has been converted to a care home? Lenders have said they cannot help with refinancing because the care home is seen as a place of business. They suggest to get a commercial loan, instead. But the owners may not continue the care home long-term, they just want to lock down a fixed rate for their residence. 

The residence still looks like an average SFH in our area, meaning there are no modifications that might make it look like a care home i.e. no advertising sign outside, no stair lifts, etc.

Has anyone ever encountered this kind of scenario? If so, would greatly appreciate to hear what the outcome was. Thanks!