Can You Get An Fha Loan On A Commercial Property

Can i get an fha home loan for a mixed use property. This means that you can purchase a multi unit duplex or triplex with an fha loan.

Can I Get An Fha Loan For A Commercial Property

can you get an fha loan on a commercial property

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That means no more than 25 percent of the total floor space can be non residential.

Can you get an fha loan on a commercial property. Many borrowers want to know if the building they want to buy is still eligible for an fha loan in spite of zoning issues design or other factors that render the home a combination of a residence and non residential purposes. The fha doesnt charge any prepayment penalties so if you can eliminate the loan in its entirety you are free to do whatever you wish with the property. The answer to this question is more complicated than a simple yes or no much depends on what local zoning laws will allow and how residential the property is.

Limited business use of such properties is permitted but the fha has strict rules governing how much of the property may be dedicated for business purposes such as a storefront office space or storage facility. Commercial real estate loans typically cost 1 to 5 upfront and 5 to 12 per year in interest. Fha will permit commercial real estate purchase using fha financing on mixed used properties using fha 203k rehab loans.

The fha also says the use of such property as a residence in an area with commercial zoning must be legal or legal nonconforming. Borrowers can purchase commercial real estate purchase using fha financing for a 35 down payment home purchase instead of the 25 to 30 for a commercial loan. Can i get an fha loan for a mixed use property.

Can i get an fha home loan for a commercial property. Can i get an fha home loan for a commercial property. If the property is zoned commercial then you will not be able to get a residential mortgage on the property.

You would have to talk to a local bank with a commercial division to see if they can do it for you but expect that if they can do it they will probably want 20 30 down payment. A commercial real estate loan is most commonly used to purchase andor renovate an owner occupied commercial property. Commercial mortgages are used to finance commercial real estate for mixed use buildings retail centers and office buildings.

Fha insured loans for single family homes are intended for the buyer to purchase property that is primarily used as a living space. Is such a loan possible. A great deal depends on how residential the home is and the amount of non residential use of the propertys total floor space.

According to the fha you can use fha financing for an investment property if you are able to prove that the property is also your primary residence. When it comes to commercial property versus private residential property much depends on the appraiser. So long as you actually live in one of the apartments you can rent out the remaining units.

What should you know about applying for an fha loan for a commercial property.

Commercial Real Estate Purchase Using Fha Financing By Borrowers