legal

Is a property with legal non-conforming use or subject to land-use restrictions eligible for mortgage insurance?

Properties with legal non-conforming use are acceptable for mortgage insurance, as long as the appraisal analysis addresses any adverse impact on value and marketability. Additional requirements apply for properties with certain land-use restrictions (such as setbacks, tidelands or wetlands which may impact ability to maintain/rebuild improvements), and for attached condominium projects (when ability to rebuild is required per agency guidelines to determine warrantability of the project).