Even for properties with a variety of potential tenants, conventional commercial mortgages may require a sizable down payment of 15–25%.
You can buy or refinance a property for both residential and business use with a Fannie Mae mixed-use mortgage.
The definition of a mixed-use property?
On a mixed-use property, you’ll find a combination of residential and business spaces.
Many different types of structures can house multiple functions, but the most prevalent are:
- Massive high-rise apartment complex with ground-floor shops and offices.
- Retail space on the ground floor, with living quarters on the second and third floors.
- Single-family dwelling that also functions as professional or business space.
The primary residence and primary place of business of some owners of mixed-use buildings are located in the same building.
Does Fannie Mae provide M3 loans?
Mortgage loans for mixed-use properties that match Fannie Mae’s criteria are available.
Exactly how do mixed-use requirements work?
Mortgage finance for properties that serve dual roles as homes and businesses is available from Fannie Mae.
The property can only be used for residential purposes if it is a single-family home.
No alterations can be made to the property that would compromise its residential-use marketability.
There is a specially designed and outfitted area on the property for commercial use, including:
- Clinic or other medical or legal practice
- Barbershop or beauty parlor
- Childcare Center
The borrower must live on the property and operate the business out of it full-time in order to qualify for a loan from Studio Fannie Mae.
Where can I find out more details?
SteveKnowsLoans is an industry leader for Fannie Mae’s MUR. We can assist you in the purchase or refinancing of a mixed-use property.
We assist owner-occupants in determining which credit product is most suitable for their needs, both now and in the future. The loan procedure is streamlined since our qualified loan officers have access to the necessary software, hardware, and other resources. To help you stay on track with your purchase agreement and refinancing deadlines, we’ve implemented an internal pre-qualification and underwriting process that’s quick and easy.
Contact the experts in mixed-use property finance at SteveKnowsLoans today for access to the industry’s widest range of financing terms, innovative solutions, and individualized care.
Call Steven Jackson at 813-616-9411 now!
