VA Loan on Single Family Home with Commercial Zoning

[realbiz]

At this point the appraisal has not been completed. After the email was sent out regarding the 75% rebuild and apartment/commercial to single family ratio, the lender and buyer put a stop on the appraisal since the property was deemed unacceptable by the lender/investors and VA. This saved them some $ on the appraisal process I guess.

Your problem appears to be with the lender/investors. Why not run this loan by another lender to see if it meets their guidelines. If the new lender has questions about the zoning they should contact the VA directly.

 

[jmcamjr]

Yes that is one of the main questions I needed answered. Thanks for all your replies. I really mean it. So it appears VA will guarantee a loan even with a 50% rebuild letter. Interesting. I guess I am even more stumped now, perhaps the lender/buyer just using that as an excuse to rescind. Not sure. I was told that "the VA wont loan on a residential property in Commercial zoning." I feel now like I was being lied to.

I have found out that a new planner, who is sick at the moment, did issue a statement or possible letter at the 75% rebuild. Senior planner said 100% for sure, and shrugged her shoulders at the 75% from the "new guy" and said "He's new."

 

[jmcamjr]

Here is official statement from the city in regards to the 100% rebuild. Garrett is the new guy?

From: Nicole Floyd <Nicole.Floyd@ci.bremerton.wa.us>
Date: Wed, Feb 12, 2014 at 3:10 PM
Subject: RE: 100% Rebuild Statement re: 628 N. Montgomery Ave Bremerton
To: John Cameron <johnrockshomes@gmail.com>
Cc: Garrett Jackson <Garrett.Jackson@ci.bremerton.wa.us>


John,

Our code is broken down into two different scenarios. Voluntary remodel or removal of a structure and destruction that is caused by fire or other natural disaster. The code discussed below by Garrett Jackson is in reference to an applicant choosing to tear their house down, or substantially destroy it and then replace it, in which case the 75% would come into play.

The nonconforming code section also says the following:
BMC 20.54.060 Nonconforming Uses
(e) Damage or Destruction. If a structure containing a nonconforming use experiences substantial destruction, it shall constitute a discontinuation of the nonconforming use, except the nonconforming use may be allowed to continue under any of the following circumstances:
(1) The structure has suffered substantial destruction as a result of fire or other casualty not intentionally caused by the owner or tenant and a complete building permit application is filed within one (1) year of such fire or other casualty.
(2) The use is a detached or attached single-family dwelling located anywhere in the City.
(3) A conditional use permit was approved pursuant to BMC 20.54.090.

Here is a link to the code section for you and or anyone else wanting documentation along these lines:

http://www.codepublishing.com/wa/Bremerton/html/Bremerton20/Bremerton2054.html#20.54Please feel free to call or email regarding this topic if you have any further questions. I am sorry for the confusion.


Sincerely,


Nicole Floyd