First, you should know what that means. A legal non-conforming use applies to a property that is currently allowed in its current legal configuration but does not conform to the zoning that is in place. One example would be a two family that is in a single family zone. Typically that property would have been grandfathered, in other words, the property was already a functional two family when the zoning was changed to a single family zone. Another example would be a single family home in a commercial zone.
So now that you know what that is, you should know that Fannie Mae and Freddie Mac both allow that classification for financing, but only under one condition. The property must be able to be rebuilt in case of total destruction with no restrictions. The catch is that in most cases a property that burns to the ground must be rebuilt to current zoning regulations or a zoning variance must be obtained. Obtaining a variance will constitute a restriction according to Fannie and Freddie thus making the property ineligible for conventional AND FHA financing.
A local bank may be able to do that deal, but you must always think about your seller when you buy any property. Remember, you make you money when you buy it, you realize your profit when you sell. Buy wrong you will never make your money when you sell.
I recently ran into this very problem for a client purchasing a property in Scotia, NY, but have seen similar properties that fall into this category in Malta, Saratoga Springs, Albany, Troy and Schenectady, NY.
Ask lots of questions when you are buying a property and work with professionals that are knowledgeable and that you trust! Call the premier NY State Mortgage Broker located in Malta, NY Victory Funding and your Concierge Real Estate Brokerage Living Well Realty for professional, expert help and you will have access to our team of real estate professionals that are second to none.
