I totally get your frustration—went through something similar myself when refinancing my home last year. Big banks can be pretty rigid with their criteria, and from what I've gathered, it's usually about risk assessment and resale potential. They're thinking, "If we have to foreclose, how quickly and easily can we sell this property?" Anything that doesn't neatly fit into their standard appraisal models or market comps makes them nervous.
"When I bought my older farmhouse, I ran into similar hurdles because the property had some acreage and an outbuilding that wasn't exactly pristine."
Yep, that's exactly the kind of thing they balk at. Acreage beyond a certain size can trigger concerns about zoning or land use restrictions. Outbuildings—especially ones needing repairs—can raise red flags about liability or future maintenance costs. Older homes often come with unique construction methods or materials that don't align with modern building codes, making banks wary of hidden issues.
Smaller lenders like credit unions or community banks tend to have more flexibility because they're often locally based and familiar with the area's quirks. They can look beyond standardized checklists and consider factors like local market knowledge, borrower relationships, and community reputation. When I refinanced through a local credit union instead of a big national bank, the whole process was smoother—they actually understood why my slightly quirky property was valuable in our local market.
Don't let it discourage you too much though... unconventional properties often have tons of charm and character that cookie-cutter houses can't match. Once you find the right lender who appreciates that value, things usually fall into place pretty quickly.
Went through something similar when refinancing our place a couple years back. Our house is a converted barn—beautiful, but definitely not standard. Big banks took one look and got nervous about comps and resale value. Ended up going local, and the community bank actually knew the property from way back. Whole process was way less stressful...sometimes smaller really is better for these oddball properties.
Had a similar experience with a client whose dream home was an old lighthouse—talk about unique. Big banks practically ran for the hills, muttering something about "marketability." Ended up finding success with a credit union, but honestly, sometimes even smaller lenders can get jittery. It's not always about size; it's about finding someone who appreciates the charm (and quirks) of your property. Glad your local bank knew the history...that definitely helps smooth things over.
Completely agree—it's often less about lender size and more about their comfort with unconventional properties. I've found that providing detailed documentation on historical significance or unique architectural features can sometimes ease their concerns...though not always. Glad it worked out for you.
Totally get where you're coming from, but honestly, I've had mixed luck with detailed docs. Sometimes lenders glaze over the historical stuff and just want to see comps or clear resale potential. One thing that's helped me is breaking down exactly how the property's uniqueness could actually boost its market appeal—like step-by-step showing them similar quirky properties that sold quickly. Doesn't always work, but at least it keeps their eyes from glazing over...usually.
