Non-Conforming Property; Need Zoning OK & Burn Letter We often get asked about “non-conforming” properties, such as residential properties in areas that are zoned commercial, or multiple units on one lot with ambiguous zoning.

Lending Against Non-Conforming Properties

Residential lenders will not lend against properties that have commercial use. They will, however, lend against non-conforming properties (properties that are not typical for the area), as long as:

  1. The appraiser can find comps and does not comment about adverse marketability issues;
  2. We can get a letter from the zoning authority (city or county) that says the residential use is allowed; and
  3. We can get a “burn letter” or a letter from the zoning authority that states that the property can be rebuilt in its current use. This is often an issue. Current non-conforming uses are often allowed or “grandfathered” in, but such uses often cannot be reconstructed if a fire destroys the property. Lenders will not lend unless they know their collateral can be rebuilt if a fire (or another disaster) occurs.


JVM Lending prides itself on having some of the lowest rates available and our unique “No Loan Officer Model.” You can view our daily quoted rates and scenarios posted here. If you have questions about the purchase process, you can also view our Purchase Process Overview here. We know how big of a milestone it is to purchase a home and our Super Team of Mortgage Analysts is available to help guide you through the process every step of the way. 

You can contact JVM Lending’s team if you have any questions about property types, mortgage interest rates, or getting pre-approved for a home loan. Our team is available 7 days a week and guarantees 60-minute response times to inquiries via phone at 855-855-4491 or via email at [email protected]

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Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167

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