FHA 203k and Mixed Use Buildings, perfect for each other in Corona
3.5% down payment available financing for a mixed use building in Sacramento CA or anywhere else for that matter. Lets hear from wherever you are. Idyllwild CA in Riverside County has a few, Compton, how about San Joaquin County and Stockton, you have more than twenty-five vacant mixed use buildings in the old downtown area. They are everywhere, all over Los Angeles, the time is now.
One of our partners just listed a mixed use building in Sacramento with a grocery store downstairs in the commercial use and residential on the floors above. I'll give you more information after the listing actually hits the market.
Where else can you pick up a mixed use property for 3.5% down and get money to fix up the residential aspects of the building? No where that I've ever heard and I've purchased quite a number of commercial and mixed use buildings over the years. What a marketing tool for your listing to be able to get it with this kind of financing.
Rules for mixed use include
- NO renovation of the tenant improvements or the interior of the commercial portion of the building. That is okay because you normally let the tenant pay for those improvements or finance them into the term of the lease.
- Income from the commercial use is not counted for qualification but a good portion of the rent from all of the residential units help the borrower qualify for the loan, even the unit they will live in.
- Borrower must live in the property.
- Single story properties can only have 25% commercial use, two story commercial use is restricted to the 1st level and only 49% of the total building as the stairs to the upper level is counted as part of the residential units, a three story building only 33% of the building can be commercial use, again it is the first level ONLY.
There is no better loan program available for this type property and a new investor who can live in it for a few years. Can you imagine having your office downstairs. You can break up the lower commercial level into one or more units. We had one in Oakland CA years ago that had five commercial offices on the first level and residential above.
Use your imagination, why fight with short sales, do something no one else is doing and be good at it