FHA Mixed Use Mortgage
Are you Eligible for an FHA Mixed Use Mortgage?
A mixed use property is an establishment that houses both a residential and a commercial unit under a single roof. If you own such a property or are considering owning one, you will want to read this.
Not many people realize that it is possible to get access to a fully amortized 30-year loan from FHA on a mixed use property. However, this loan is not for everyone, and here is why:
• You must be an owner-occupier of the property to be eligible for the loan.
• The building must hold between 1 to 4 units. However, you can finance a 5-unit house if only a single unit is for commercial purposes.
• The building must go through an appraisal, which is usually tough.
• Your finances must be completely documented. For instance, you must show all previously paid notes.
• You must give proof of legal, permissible use of the property under the local zoning requirements.
• The market value of the property must arise from the residential characteristics and not commercial ones.
• In case you apply for a 203K rehab loan, the funds will only be used for the residential repairs, and areas used to access the residential part of the property.
These and other factors show you why it is vital to know exactly what the FHA-lender wants from you before you apply for the loan.
Our Role in the Process
At Mixed Use Mortgage, we understand your needs as a mixed property owner. This is why we have identified FHA-approved lenders who can fund your acquisition or refinance your existing FHA loan.
Many borrowers have approached us with various issues about their loan application for FHA-backed mixed use properties. We have provided solutions that left them satisfied. Whatever situation you are facing, we have the solution.
Don’t hesitate to give us a call and discuss your options, consultation is free and never a fee.