Did You know that MortgageDepot is now doing small mixed-use properties under FHA guidelines??? It’s true!!

FHA will allow for us to originate mixed-used property loans using residential pricing and down payment is only 3.5%
as long as the property meets certain FHA guidelines.

The property must be 1-4 unit building with a minimum of 51% of the entire building square footage is for RESIDENTIAL use. So the commercial part of the property must be less than 49% commercial. As long as the residential property use is 51%, then this is acceptable to FHA.

Best examples that WILL NOT be acceptable:

  • dry cleaners
  • auto body shops
  • tool and die shops, etc.

Best examples that WILL be acceptable:

  • Residential
  • commercial
  • retail
  • office
  • or parking space usage.
  • 620 minimum credit score
  • Must have an Approve/Eligible findings via Fannie Mae.
  • 3-4 unit properties MUST pass the self-sufficiency test and have 3 months reserves. (ask our loan officers what this means).

The appraiser must state that the commercial use WILL NOT affect the health and safety of the occupants for eligibility.Please reach out to our loan officers to learn more about obtaining financing for a mixed-use property with only 3.5% down payment.

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