“Doing a 203K Loan on a Mixed-Use Property”
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.
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.
Subscribe to my blog via Email:
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
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.