“Doing a 203K Loan on a Mixed-Use Property”

“Doing a 203K Loan on a Mixed-Use Property”

 

 

 

 

Hi Joe,

I have an estimate of cost to put in a kitchen for the property at 191 Providence Street.  Contractor estimates $15,000.  When would be a good time to speak with you or meet with you regarding the 203k loan?  I am still blown away that you can do this type of loan on a mixed use property.

Thank you,

Karen

 

Yes, a 203K can be done on a mixed-use property. There are a couple of very important rules that need to be followed. The down payment in most cases is still 3.5%.

 

First, the residential space must be larger than the commercial space and the residential has to be at least 51% of the total square footage.

 

Second, the total number of units cannot exceed 4. It is possible to convert an additional unit or two into the other units to stay within the 4 unit maximum.

 

 

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Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com

www.righttracfg.com

www.joepetrowsky.com

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Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

Equal Housing Statement: We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing becuase of race, color, religion, sex, handicap, familial status, or national origin.

Comment balloon 3 commentsJoe Petrowsky • October 02 2018 02:17PM

Comments

Great tip!

First, the residential space must be larger than the commercial space and the residential has to be at least 51% of the total square footage.

Second, the total number of units cannot exceed 4. It is possible to convert an additional unit or two into the other units to stay within the 4 unit maximum.

Posted by Sham Reddy, CRS (H E R Realty, Dayton, OH) 2 months ago

Good morning Joe. Finding someone who can do 203k loans is one thing. Understanding the rules another. Enjoy your day!

Posted by Wayne Martin, Real Estate Broker - Retired (Wayne M Martin) 2 months ago

Hello Joe,

You can surely contact a mortgage lender who will help you.

Thank you.

Posted by Drew Mortgage Associates, Mortgage Lenders (Drew Mortgage Associates) 2 months ago

Participate