Looking for creative mixed-use financing

Upstate New York, New York
Mortgage Brokers & Lenders
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Looking for creative mixed-use financing

Matthew Toporowski
Member since 2024 · 11 posts · 5 votes

Hello! 

I own a few properties, including a mixed-use, and am interested in a potential purchase of another mixed-use in Upstate NY. Property generates some income via an STR and a commercial space, looking to put my small biz in part of the commercial space, and part of it you can live in. Space is pretty unique, and not cheap. Not sure if it would be DSCR. Last time I did mixed-use financing had to go FHA, but I don't think it would work on this one. Any thoughts please DM! Thanks.

-Matt

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  • Bo SmithPro Member
    Hinton, WV · Member since 2026 · 1k+ posts · 373 votes
    7mo

    Mixed-use financing gets tricky fast. Local banks beat big lenders here - they actually underwrite the whole deal vs just checking automated boxes. Are you moving in right away or phasing into it?

    0Reply
  • Matthew Toporowski
    OP
    Member since 2024 · 11 posts · 5 votes
    7mo

    Flexible on the move, but the space doesn't need work so it's ready to go.  All of my properties I've used local lenders, credit unions, but I had thought larger lenders would handle bigger loans, bigger DTR, etc.  Take on more risk.  

    0Reply
  • Joel Weiser
    Lender · NY · Member since 2024 · 32 posts · 11 votes
    7mo

    If the property is occupied and generates income there are DSCR options

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    7mo
    Quote from @Matthew Toporowski:

    Hello! 

    I own a few properties, including a mixed-use, and am interested in a potential purchase of another mixed-use in Upstate NY. Property generates some income via an STR and a commercial space, looking to put my small biz in part of the commercial space, and part of it you can live in. Space is pretty unique, and not cheap. Not sure if it would be DSCR. Last time I did mixed-use financing had to go FHA, but I don't think it would work on this one. Any thoughts please DM! Thanks.

    -Matt


     You can structure this on an owner-occupied commercial loan. It will likely require 25-30% down minimum 

    [email protected]818-269-7983
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    0Reply
  • Mayo Gilfurt
    Real Estate Consultant · Connecticut Ct · Member since 2026 · 130 posts · 30 votes
    7mo

    Matt — you're right to question DSCR here. Once you introduce owner occupancy + owner-operated commercial use, most DSCR lenders fall out.

    Depending on % owner occupancy and how the STR income is treated, this usually lands in portfolio bank / mixed-use commercial territory rather than FHA or pure DSCR.

    A couple of structuring options may still work, but it hinges on occupancy %, income breakdown, and whether the business space is owner-occupied or leased.

    Happy to walk through it — I’ll DM you

    0Reply
  • Account Closed
    Member since 2026 · 35 posts · 3 votes
    6mo

    Hey Matt,

    Sounds like a really cool setup you're putting together with the STR, commercial space, and moving your own business into part of it — mixed‑use like that rarely fits neatly into the FHA/conventional box, so it makes sense you're looking for more creative options.

    Mixed‑use properties with a combination of STR income, commercial rent, and some owner‑use can sometimes be structured as DSCR or other business‑purpose loans, but it really comes down to how the income is documented, how the space is allocated between commercial and residential, and whether you're primarily approaching this as an investment or as an owner‑user. In a lot of cases, non‑bank/private lenders are more flexible on unique layouts, STR exposure, and mixed commercial use than traditional FHA or agency options, especially in markets like Upstate NY.

    If you're open to it, feel free to DM me some more details on the deal (purchase price, projected rents from the STR and commercial, how much space your business would occupy, and your rough financing goals), and I'm happy to walk through a few ways investors are getting these financed right now without going the FHA route. Even if it doesn't end up being a fit for DSCR, there may be a couple of other mixed‑use or bridge structures that could work as a path to longer‑term financing.

    — Robert

    0Reply
  • Nyron Isaac
    Member since 2024 · 144 posts · 28 votes
    3mo

    Mr. Toporowski,

    An FHA loan definitely won't work on a high-value, unique mixed-use property like this, and standard DSCR programs will struggle to underwrite the combination of STR income and personal business occupancy.

    Because you are putting your own small business into a portion of the commercial space, your absolute best creative path is an SBA 7(a) loan. If your business occupies at least 51% of the commercial square footage, you can qualify for an SBA loan with as little as 10% down. This lets you wrap the purchase and any build-out costs into a single mortgage using your business's operational revenue to qualify.

    If you don't meet the 51% occupancy mark, look into the Non-QM alternative commercial lending space. Specialized portfolio lenders can underwrite this via a global cash-flow analysis, using AirDNA data to qualify the STR portion and your personal income to cover the rest, though they will require a standard 20–25% down payment

    I hope this helps!

    0Reply
  • Vijay FriedmanBusiness Member
    Miami, FL · Member since 2026 · 766 posts · 123 votes
    3mo
    Quote from @Matthew Toporowski:

    Hello! 

    I own a few properties, including a mixed-use, and am interested in a potential purchase of another mixed-use in Upstate NY. Property generates some income via an STR and a commercial space, looking to put my small biz in part of the commercial space, and part of it you can live in. Space is pretty unique, and not cheap. Not sure if it would be DSCR. Last time I did mixed-use financing had to go FHA, but I don't think it would work on this one. Any thoughts please DM! Thanks.

    -Matt

    @Matthew Toporowski
    Mixed-use properties can definitely be more nuanced, especially when you have a combination of commercial space, STR income, and owner occupancy. The financing often depends on the property's income mix and occupancy rather than fitting a standard residential program. Do you know roughly what percentage of the property is commercial versus residential?

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    DreamPoint Capital
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    0Reply
  • Andrew Lee
    Lender · Grasonville, MD · Member since 2025 · 70 posts · 16 votes
    3mo

    Hi Matt,

    I can do mixed use as long as the residential portion is at least 51%. 

    0Reply
  • Simcha B Shedrowitzky
    Lender · Nationwide · Member since 2024 · 76 posts · 24 votes
    3mo
    Quote from @Matthew Toporowski:

    Hello! 

    I own a few properties, including a mixed-use, and am interested in a potential purchase of another mixed-use in Upstate NY. Property generates some income via an STR and a commercial space, looking to put my small biz in part of the commercial space, and part of it you can live in. Space is pretty unique, and not cheap. Not sure if it would be DSCR. Last time I did mixed-use financing had to go FHA, but I don't think it would work on this one. Any thoughts please DM! Thanks.

    -Matt




    Hey Matt,

    Mixed-use properties with an owner-occupied small business and a short-term rental (STR) element are definitely tricky to place, but you absolutely have a few viable paths forward here.
    0Reply
  • Andrew Lee
    Lender · Grasonville, MD · Member since 2025 · 70 posts · 16 votes
    2mo

    I know this is an older post, but many lenders can finance mixed use via hard money if it is 51% residential. 

    0Reply
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