Industrial- mixed use zoning

[Natalie Allen]

We are currently trying to purchase a SFH that is zoned as Industrial- mixed use. We want this to be our primary residence, but operate a small Tailoring business out of. We spoke with the City and they told us that if the house were to burn down it would be covered at 80% with ‘some flexibility'. Our lender was trying to get us a conventional loan with only 5% down, which was ideal! The appraisal cancelled due to the zoning and said we would need a commercial loan. I would love to find a way to go conventional as we will be living there as our primary residence. Anyone have any advice or have much experience with this type of zoning? Is it even possible to go the conventional route? Would it be worth getting another appraisal?

Thanks in advance!

Natalie