Income is due to caring for seniors in my home, different rules?

[Katie Fairchild]

It has been a LONG time since on BP. When first on here, it was in a desperate measure to find funding for opening my home to seniors and concerns my business caring for them would fail. Things turned out well with constant pressure of my own to make things work. They finally did. My question now, is if you make your income from housing others in your home, across the board when it comes from lenders? Copy and paste is below. Is it better that I just stay with seller finance?

It has been well over a year since I have been on this site, yet I keep up with it on FB, etc. When I first came to BP, it was because I needed help on possible financing for my business Safe Haven Senior Family Home. In 2009 and 2010, I was in a battle with the City Of Huntsville, Al zoning to open up a residential home for senior care, and my variance was denied due to neighborhood resistance. I sued the city. During that time, the HOA sued me as well for breaking covenants for trying to start a business to care for seniors and creating a business in their neighborhood. Long story short, I stuck to my guns and won both cases, and also set precedence in Huntsville that this will not happen again to others that want to help the elder community in housing them. Also precedence was set that neighborhood HOA's cannot interer with covenants when it comes to this.

Now, with winning both cases, the business is doing really well, I am wanting to buy the home, at a HUGE discount. I contacted my credit union on this, and the reply is below. What I REALLY need to know, is if this is across the board for all lenders on this concerning income of housing individuals in a home? I am not certain that I have this subject in the right place, so any comments to place it elsewhere will be appreciated. Thank you in advance. Any links concerning this would also be appreciated.

Katie Fairchild

Mrs. Fairchild,

Since you do receive income from housing individuals in your home, the best we could quote you on a rate, but not guaranty is 5% either on a 12/yr Fixed, or 5/yr Balloon, 20/yr Amortization. The Loan-to-Value cannot exceed 80%. So to get $150,000 the house would need to appraise for $191,000-$192,000.