“Doing an FHA 203K Loan to Purchase a Mixed-Use Property”
I am interested in purchasing a property and the listing agent recommended that I communicate with you. The property is a mixed use property, the problem is none of the banks that I have spoken to are very interested in doing a loan for me for one reason or another, but one of them did say they would do a loan for me with 20% down, which I do not want to do.
Let me explain a few more things, I want to live on the second floor and use the lower level for my part-time business. I have a baking business which is becoming more and more successful and may eventually give up my teaching job.
The main reason I don’t want to put the 20% down is because I will need to equip the lower level with newer equipment. I am currently renting a storefront and the equipment that I have used is older and not efficient. Also the second floor apartment needs some updating.
Do you have any suggestions for me as you came highly recommended. Sharon XXXXXXXX
Believe it or not, you can purchase a mixed-use property using FHA. There are a few simple guidelines, first you must live in the property, second the residential portion of the property must be larger in square footage than the commercial space and if renovations are required then, thirdly they can only be done to the residential space and finally the maximum number of units in the building cannot exceed 4 units.
Down payment required is 3.5% and interest rates are the same as any typical FHA mortgage.