Is Financing a mixed-use (Zoned R2) Property different?

[Jamie Ross]

I have a property under contract, but the underwriter at my hardmoney lender indicated that since the bottom unit has most recently been used as a commercial property, that the appraiser will want to classify the property as commercial thus negating my ability to obtain financing. My plan is to rehab the property and convert it into a true residential duplex. Has anyone else run into this dilemma?