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FHA & Commerical Zoning 31 Acres

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Thread Starter
Sophomore Member
Jan 16, 2008
Professional Status
Certified Residential Appraiser
New York
I am looking for some info on the following FHA senario...

Single family residence in good condition on 31 ac...mostly wooded with a large pond.

The town changed the zoning from residential to enterprise light which would allow commerical usage of the subject property.

The adjoining properties are already light commerical properties and well buffered and far enough away from the subject in away that there is no negative impact.

Besides the few commerical properties on the block the majority of properties in the defined area are residential.

Today, the HBU appears to be residnetial.

An active listing with similar zoning isn't selling despite commerical potential. The market is a declining one.

The subject is legal non conforming and if destroyed can be rebuilt within one year only.

I am trying to get clarification if the subject can be subdivided. Lot sizes in the area vary from 2 ac. up to 41 acres. Most lots are at least 10-20 acrs.

My questions are as follows...

Does this sound like an excessive land issue?
What is the FHA protocal if the property can be subdivided?
Is the rebuild restriction of one year a FHA issue?
Will FHA insure this type of loan?
What caution should I take regarding this type of appraisal?
What if today's highest and best use is residential but the owner desides to convert the property the day after closing to commerical? Is that my problem?

Any suggestins or helpful guidance will be greatly appreciated.
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