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Under contract and approved for mortgage but appraiser says the property is commercial and refuses to proceed (US)(MI)

We are under contract for a relatively unique house within our community. Built in the 1950s it was originally a house and a detached doctors office. The doctor died in the 1980s and they basically locked the office doors and never went back in. In 2009 the current owners bought it from the widow of the doctor and combined the two properties, retiring the office address and adjusting the zoning to be one residential property. The entire property is zoned residential according to the city.

The appraisers that our lender chose are apparently using a data source that tells them this property is commercial and requires a commercial appraisal. They also demanded we provide them with comps because they couldn't find any and said that they wouldn't be able to appraise it higher than 60% of contract price.

Our lender is not local. They're an internet-focused lender in California. We decided to go with them because we used them for the refi on our current house a few years ago.

Questions:

  1. What data source are the appraisers looking at? We can't find anything in our brief public records searches other than the city's zoning map.

  2. Do we or the lender have any recourse?

  3. Is any of this normal? We aren't living in normal times and this is not a normal property in the before times, but this all still seems very weird to us.

  4. What should we do?

submitted by /u/zrail
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/gb8clh/under_contract_and_approved_for_mortgage_but/
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