Low down payment options for mixed use
Good morning BP
are there any low down payment options for an owner occupied 3-unit mixed use property? Bottom floor is retail, with two residential apartments above.
thanks for the help!!
I don't know exactly what "low" is for you; but typically for this type of property the LTV is around 70%-80%. I would recommend you speak to local banks and credit unions. If you are able to build a relationship there, that will be a great way to secure a loan with a lower down payment on this property and future properties.
You being an owner occupant, could open additional banking options for you. I remember years back that one bank I spoke to would only loan on commercial properties if the owner was an occupant. Usually, that meant an attorney buying a small office building and using one for his practice but, you are still occupying a unit.
-
Real Estate Agent Florida (#SL3473500)
- Global Investors Podcast
- https://harborsidepartners.com/commercial-real-estate-podcast/
Hi @Brian Ellis, if you can somehow subdivide the residential and retail, you could use 3.5% down FHA or 5% down conventional financing for those.
However, for the retail, you would be looking at 20-30% down.
If you cannot subdivide it, you would be looking at 20-30% down on the entire property.
You might be able to find a local bank or credit union with which you can build a relationship with them to get better terms.
Hope this helps!
@Brian Ellis VA (0% down) & FHA (3.5% down) will allow for owner occupied mixed use (max 4 units). Commercial sq ft can't be more than 50%.
Reach out if you like to learn more. I can get you pre-approved.
-
Lender (#National Lender NMLS 1374243)
- The Federal Savings Bank
- (571) 331-5161
- https://mortgagefinancepros.com
- [email protected]