Financing a 4-plex, zoned commercial.

2 Replies

I found a 4-plex close to where I live and I'd like to purchase it with the least amount of my money (of course). It needs work, its a foreclosed property, and it's owned by HUD. The issue is, the property is zoned commercial. I called FHA and they said they would allow the property to be funded on a FHA as long as 51% of the property is used as residential and it's owner occupant. (Score.) Now my question is: Does anyone know a lender who would do FHA on a mixed use?

I know I could do a commercial loan for 20-25% or buy it all cash but I'd rather try this way since FHA said it was possible. Why not? So I'm reaching out to BP in hopes someone else has tried this and was successful.

Originally posted by @Nick Rutkowski :

I found a 4-plex close to where I live and I'd like to purchase it with the least amount of my money (of course). It needs work, its a foreclosed property, and it's owned by HUD. The issue is, the property is zoned commercial. I called FHA and they said they would allow the property to be funded on a FHA as long as 51% of the property is used as residential and it's owner occupant. (Score.) Now my question is: Does anyone know a lender who would do FHA on a mixed use?

I know I could do a commercial loan for 20-25% or buy it all cash but I'd rather try this way since FHA said it was possible. Why not? So I'm reaching out to BP in hopes someone else has tried this and was successful.

This property will get done, but the question I have is this;  it a 4 unit or is it mixed use?  

Like I said, either way you should be okay; if it's a 4 unit in a commercial zone, as long as the "highest and best use" is 4 units, you're good.

If it's a mixed use property, as long as the majority is residential O/O, you're good as well.

Nice find

Stephanie

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