FHA loan and commercial property

5 Replies

@Stephen Bechtolt Yes and no.

FHA 203k is specifically for residential as far as I know. However, FHA does lend on commercial properties, (FHA 203b or 223f or something like that) but they have to be something like 75% purposed for residential use. These loans won't be 3.5% down though, they'll probably be 15% down, give or take 5%.

Sorry I don't know more, hopefully a commercial lender chimes in here. Good luck!

Originally posted by @Stephen Bechtolt :

Hello BPs universe, 

Can you use an FHA loan plus a 203K rehab loan when you want to purchase a commercial property?



FHA 203k is entirely based on what the thing will be after the renovation. So you can do it if your renovation plan is to turn it into residential, assuming the zoning/ordinances/etc will allow for that.

There are some rarely invoked provisions in FHA guidelines that address mixed use properties. Get tight with your lender on that, it'll be property specific.

Did you get any further with this? Checking, because i'm looking into a property that is mixed residential and commercial, and hope to move into the main unit and rent our the rest commercial/residential. 

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