ZONING VS. PROPERTY TYPE - which is the bank considering to define financing conditions?

[Nir]

Hi,

Is a Triplex zoned commercial and 8-plex financed similarly? Is it the ZONING or the PROPERT TYPE that define the bank`s financing conditions?

Commercial is around prime plus 1.25%, residential prime minus 0.6%. Bid difference!

THANKS,
Neil

 

[RobMacdonald]

The 8 Plex will be definitely priced as commercial, but you may be able to get residential financing on the triplex. It will be determined by the actual commercial zoning on the triplex. Is there a permitted residential use under the zoning?

 

[Nir]

Thanks Rob, very interesting.

Zoning shown on the MLS is "C-1". not sure about the definition/whether there is a "permitted residential use under the zoning"(?)
However, I do believe it is a legal (old) triplex. should I ask the city planning department about the permission or is it safe to assume it will probably get residential financing?

Regards,
Neil