Updated about 8 years ago on . Most recent reply
Multi-use property financing
I am looking into a multi-use property, meaning there is a commercial space on the first floor (currently occupied by a flower shop), and an apartment on the second floor. My wife and I are planning on living in the apartment and renting out the commercial space. The property is currently listed for $79,900 and the first floor rent is $600 a month. We currently have $10,000 saved for a down payment. The problem is that we are looking into financing and no one will finance for 10% down because it is considered a commercial property; they are asking for 30%. FHA supports multi-use properties under certain circumstances, which we meet (see link): https://hudgov.prod.parature.com/link/portal/57345... No lender has mentioned this option. Is it possible they don't know about it? Does anyone have any insight into multi use properties and how I can get financing for 10% down or less?
This is my first real estate buying experience, so any help would be greatly appreciated!