Mixed Use Purchase
What You Need to Know When Purchasing a Mixed Use Property
Mixed use properties hold residential and commercial units in the same establishment. However, financing these properties is a challenge because of the risk associated with them. But the good news is that there are lenders who can offer you this loan at reasonable terms.
Qualifying for a Loan
To qualify for a mixed-use property loan, you need to meet a few conditions set by lenders. These include:
• A DSCR of 1.1 and above
• A minimum credit score of 680 FICO
• A down payment of at least 24 percent of the property value.
A DSCR of 1.1 tells the lender that you can repay your loan amount and interest comfortably using the equity help by the property.
The credit score shows the lender your ability to repay the loan. It also has a hand in determining your interest rate.
Lending on a Mixed Use Property
Many lenders become uneasy when faced with a loan application for a mixed-use property. This is because a high percentage of the property’s income comes from the commercial and not the residential part of the property. This is why a lender looks at the nature and primary purpose of the property in question before giving you the loan. In essence, commercial use shouldn’t be more than 20 percent of the total living area for a mixed-use property.
How Can We Help?
Since Fannie Mae and Freddie Mac don’t purchase mortgages secured by mixed use properties, you need another option.
We give you this option.
At Mixed Use Mortgage, we tell you the best options you have to finance your mixed-use property. Additionally, we introduce you to trustworthy lenders that can give you this loan. If you have a low DSCR, we help you get stated loans to finance your property.
Don’t hesitate to give us a call and discuss your options, consultation is free and never a fee.
To contact us by phone call (800) 535-0270 or email us by clicking here.