“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.
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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
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.