Yes, in case you were wondering, we got a call yesterday from someone in the Los Angeles area inquiring about a loan for a Mixed Use property. I really like this type property for a entrepreneur who wants to live close to their place of work or a new investor who can get their feet wet in a mixed use setting. They should want to live close to their investment for sure.
I had another one very much like this one where there was a storefront in a separate building that faced the main street in Vallejo, CA and on the side street there was a large single family residential property with two stories. I still drive by it now and then to see what activity is going on.
The requirement as you know, is that a two-story FHA 203 mixed use property would have no more than 49% of the building area to be used for commerical use.
Example 1: 1500 SF single story commercial building and a two story single family home on the same lot but around the corner and behind the store located on a residential street. The SFR is about 2,000 SF for a total of 3,500 SF but as you can see the total being used for the commercial use is well under the 49% and therefore qualifies as an FHA 203k purchase or refinance project.
Exampe 2: What if we had a 1500 SF commercial space and a smaller home to the rear, say, about 1000 SF one story home to the rear, now we have a property with an excess amount of commerical use for the program... not a problem if we add to the residental aspects of the property. We could add a 1500 SF second story to the commerical structure and gain a new house or flat for our client to live on if they wanted to be able to look down the street from above, or we could add on to the house. Either of these solutions would qualify this property as a mixed use and acceptable to the FHA 203k loan program
