Skip to content
Buying & Selling Real Estate

User Stats

1,173
Posts
1,644
Votes
Brian Ellis
  • Rental Property Investor
  • South shore, MA
1,644
Votes |
1,173
Posts

Low down payment options for mixed use

Brian Ellis
  • Rental Property Investor
  • South shore, MA
Posted Jun 27 2022, 04:34

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!!

User Stats

2,652
Posts
1,800
Votes
Charles Carillo
Pro Member
  • Rental Property Investor
  • North Palm Beach, FL
1,800
Votes |
2,652
Posts
Charles Carillo
Pro Member
  • Rental Property Investor
  • North Palm Beach, FL
Replied Jun 27 2022, 11:38

@Brian Ellis

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.

User Stats

739
Posts
409
Votes
Andrew Garcia
  • Lender
  • Charlotte, NC
409
Votes |
739
Posts
Andrew Garcia
  • Lender
  • Charlotte, NC
Replied Jun 27 2022, 13:41

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!

BiggerPockets logo
BiggerPockets
|
Sponsored
Find an investor-friendly agent in your market TODAY Get matched with our network of trusted, local, investor friendly agents in under 2 minutes

User Stats

1,839
Posts
799
Votes
Upen Patel
Lender
Pro Member
  • Lender
  • Nationwide Lender
799
Votes |
1,839
Posts
Upen Patel
Lender
Pro Member
  • Lender
  • Nationwide Lender
Replied Jun 27 2022, 14:57

@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.

The Federal Savings Bank Logo