Erica Danega
Home Buyer
Tully, NY

I was hoping to purchase a home in Onondaga county. We were roughly 2 weeks away from closing when we learned from the Bank Appraisal that the property was zoned R5 General Business. In the village the R5 code can allow for a single family dwelling however this means nothing to the lending agencies.

So far we have contacted the village and have learned that rezoning this property is not an option. I have contacted at least half a dozen lending companies all of whom turn us down due to the zoning. I have learned that the reason lending institutions cannot lend is because this mortgage would not be able to be sold on the secondary market. To my understanding this is due to Fannie Mae and Freddie Mac recently tightening restrictions on mortgages that they will purchase. At this point we are also concerned about the ability to resell the property at a later date. Before we walk away from the property are there any other avenues that should be pursued? Any advice?