How can I obtain a Re-Mortgage or Equity Loan for property that is residential but zoned commercial. I cannot obtain a traditional residential mortgage because of the zoning. The county will not provide a rebuild letter to replace a residential structure. I do not qualify for a commercial loan. I have about $100,000.00 equity in my property. I would like to refinance to get the cash needed to start up a transportation company. This property would be used as my home office but also my residence. Am I stuck in a white elephant situation or is there something I can do?

Assuming that you do not have any other source of income other than what you expect to get from this new business you are starting up, it seems to me as if it would be a difficult task to get financing.

If I had to make an educated guess, the lender interested in providing funds would have to be more interested on the collateral than it would be on the source of repayment since there really isn’t a good one available. Banks are not collateral lenders or at least they shouldn’t be. “From time to time greed gets the best of a lender, but that is the reason why credit functions should be independent”

I do have one question about your comment ” The county will not provide a rebuild letter to replace a residential structure.” Does this mean that the property is in disrepair? Do you need to do something to the property? What does that have to do with cashing out the equity with a loan?

You also said that you need the cash to start a transportation company. Have you created a business plan for this business?

Maybe if you give more details on income someone can figure out how you can access the equity.

There are lenders that will not require the rebuild letter if you have enough equity in the property. You will just have to search for them. A broker may be your best bet. Your problem is called nonconforming zoning. I do loans in CO and am having the same issue with one of them. Good luck!