Zoning

1.  I have a property that is in a mixed-use neighborhood that is zoned C-1.  Since home and businesses are mixed in the area and the appraiser comments on this, can we do a home loan on the property?

Zoning is not the controlling factor, remaining economic life is.  If the appraiser feels that the property has a remaining economic life of 30 years or more, before the transition to commercial has reached the point that the highest and best use is no longer residential, it is acceptable to VA.  The appraiser must consider any negative effect on the subject property from the commercial influence that is not shared by the comparable properties used in his report.

2.  A veteran currently has a VA loan.  The property is zoned commercial and was when the veteran obtained the first VA loan 7 years ago.  Can the veteran still qualify for a streamline regardless of the commercial zoning?  It also has an antique store on the first floor, which the veteran runs.

If the veteran is refinancing to lower the interest rate and is receiving no money back, then no appraisal is required and no minimum property requirements will be made.  Thus, he would qualify for a refinance loan in spite of the commercial zoning and the antique store on the first floor.  If an appraisal is required by VA, then minimum property requirements must be met.