Need financing assistance

[Marquise Lee]

Hi All, I'm in need of assistance with the best way to approach financing for a large home that is zoned residential (RSA-5) in Philadelphia. 

My original lender rejected the deal because for the last 50 years the home was used as a funeral home on the first floor with an owner-occupied residence above (they uncovered variances with the city indicating such). I've talked to 2 other residential lenders since, both of whom don't think they can get the deal done either.

Anyone have thoughts on how to get this approved? FHA 203k? Commercial? Keep calling residential lenders?

Additional things to note: 

- The purchase price $535k, which is above the FHA limit ($484k) for Philadelphia
- A full renovation ($80-100k) is necessary as it hasn't been updated in close to 40 years. If permitted by zoning, I'd be interesting in keeping the 1st floor commercial as I plan on starting my own business down the line.
- I can pull together approx $160k to make all of this happen.
- My current property is currently under an FHA loan but I'm willing to refinance if that makes the most sense.