7-unit Victorian Converted: Residential Or Commercial?
I am looking at a large Victorian home that has been converted into 7 units (1/1 and 2/1). Would any lenders do a conventional residential loan or do I need to look for a commercial broker for a commercial loan? I will not be occupying any of the units.
Thank you
what does the zoning / building office call it? SFR or MFH?
Quote:
On 2008-12-09 23:27, cjmazur wrote:
what does the zoning / building office call it? SFR or MFH?
It is zoned R-D, low-density multi-dwelling areas compatible with single family dwelling areas.
sbell09.
People are asking if the city classifies this home as multifamily. If the city records indicate this address has 7 electrical or water meters; or someone pays taxes as multifamily then it will be a commercial loan.
Any property with 5 or more units is classified as commercial for loan purposes. You can play all the games you like with the city and/or the lenders trying to mislead them into believing this is a duplex; but it will eventually catch up with you,;and the interest is higher and financing will be difficult for a 7 unit.