I've found it's less about the bank's size and more about their familiarity with your specific situation. Had a similar issue when I was looking at a fixer-upper duplex—my usual credit union just didn't get it. Ended up talking to a mortgage broker who specialized in unconventional properties, and suddenly things clicked into place. Sometimes smaller lenders can surprise you, but if your deal is even slightly outside the norm, finding someone who's handled something similar before saves a ton of headaches...
Had a similar experience when I was looking into buying a rural property with acreage—my usual lender just couldn't wrap their heads around it. Ended up working with a smaller, local bank that deals with farmland regularly, and the whole process became way simpler. Curious though, has anyone navigated loans for properties with mixed zoning (like residential/commercial)? Wondering if that's an even bigger headache...
"Curious though, has anyone navigated loans for properties with mixed zoning (like residential/commercial)? Wondering if that's an even bigger headache..."
Mixed zoning can definitely be trickier. A few years back, I looked into a property that had a storefront downstairs and an apartment upstairs. My usual lender basically shrugged and said "nope," but a credit union nearby was way more flexible. They did require extra paperwork and an appraisal that specifically addressed the commercial aspect, but overall it wasn't too bad—just more hoops to jump through.
"My usual lender basically shrugged and said 'nope,' but a credit union nearby was way more flexible."
Yeah, credit unions can be lifesavers for these mixed-use properties. Banks often stick to strict guidelines, but smaller lenders or local banks sometimes have more wiggle room. One thing I'd add—make sure you clearly outline the percentage of residential vs. commercial space upfront. Had a deal almost fall apart because the lender misunderstood the ratio... clarifying early saved a ton of stress later on.
"My usual lender basically shrugged and said 'nope,' but a credit union nearby was way more flexible."
Yeah, that's pretty common actually. Big banks tend to have rigid checklists, and if your property doesn't neatly fit their criteria, they're quick to pass. Credit unions and smaller local banks usually have more flexibility because they can look at your situation individually rather than just ticking boxes.
One thing I'd suggest is to get your paperwork super organized before approaching these smaller lenders. Clearly break down the residential vs. commercial percentages, and have documentation ready to back it up. I've seen deals stall because the lender got confused or misunderstood the property's use. If you can clearly show them upfront exactly what they're dealing with, you'll save yourself a lot of headaches down the road.
Sounds like you're already on the right track though... good luck with it.
