Financing Illegal Duplex

[Joseph Micheal]

Hi All!

I am looking into purchasing an illegally zoned property (currently used as MFH and zoned as SFH). I spoke with a loan officer who had some concerns that the discrepancy in zoning may derail the deal and leave out of pocket my escrow deposit and appraisal fee. Have others encountered this?

Some ideas I have are:

1) Hard money: Not ideal but would allow for me to purchase the property go through appropriate zoning and then refi.

2) Use online mortgage company: More removed from the details and less likely to raise a concern over the zoning.

3) Subject-To purchase: Need to connect with the owner

Would appreciate and insight on how to best navigate this situation!

Thanks!