I am a 19 yr B&B business owner that cannot seem to obtain a refi loan ANYWHERE. As traditional small B&B's are, my house is an owner occupied income producing property, but it doesn't fit into "residential" loan requirements. Yet with a commercial loan, it can't be owner occupied. Searching for answers - we make a good living but the 30 yr fixed rate with only 12 years has left us with no savings except the gain on the house if we sell. We want to continue this way of making a living but not at this rate. Any advice would be appreciated.
Here are our guidelines for mixed use properties. Message me if you would like some more info!
MIXED USE PROPERTIES
If it can be determined that the nature, intent, and primary purpose of the property is residential in use. The following should be considered in making this determination:
The commercial/agricultural use must be allowed by zoning and the subject must conform to zoning.
In general, the commercial use should not exceed 30% of total gross living area of the property.
Agricultural usage should generally not exceed 30% of the total acreage.
Income generated on property used for agricultural purposes should be minimal.
Commercial use should not result in significant alteration to the property or one which could not be easily converted back to residential.
The commercial use should generate a minimal amount of traffic noise.
The subject must be a single family dwelling.
The room layout must be reasonable for a residential home.
The property must be appraised as residential real estate, with commercial/agricultural value not included in the appraiser's market value.
The appraiser must comment on any affect the commercial/agricultural use has on marketability and compatibility with the subject's neighborhood.