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Loan Scenario Help On FHA 203k Loan On Commercial Mixed Use Property
#1
Hi John,

While you are trying to get me the guest login for pricing, maybe you can look into the scenario we discussed over the phone. It can be one of my trial loans. 

Purchase Price: 500k
Property: 2 units, legal nonconforming mixed use

Per Fha guidelines, they will accept a mixed use as long as the residential unit is minimum 51% of total square footage. Here's the excerpt: 

(5) Mixed Use of Property

Mixed Use refers to a Property suitable for a combination of uses including any of the following: commercial, residential, retail, office or parking space. Mixed Use one- to four-unit Single Family Properties are eligible for FHA insurance, provided:
  •  a minimum of 51 percent of the entire building square footage is for residential use; and
  •  the commercial use will not affect the health and safety of the occupants of the residential Property.
Here's my main question:
  • The current residential unit is about 850 sqft while the commercial unit is 950.
  • Per the guideline above, the residential unit needs to be a minimum 51% of total square footage.
  • Since a 203k loan takes into consideration the future repairs of the unit, can we count the future addition's square footage?
  • The buyer is planning to add a bedroom and a bathroom to make the residential unit 1,100 sqft, which would then meet the minimum 51% requirement.
  • Would we be able to do this loan with Cross Country?
[Image: cleardot.gif]
Manny Elias
Gustan Cho, NMLS 873293
Area Manager
The Gustan Cho Team at CrossCountry Mortgage Inc. NMLS 3029
address: 425 North Martingale Road Suite 1280, Schaumburg, IL, 60173
Website https://www.gustancho.com
Direct 800.900.8569
Email gcho@gustancho.com
Facebook: https://www.facebook.com/TheGustanChoTeam/
Google+: https://plus.google.com/+GustanChoLoans
Twitter: https://twitter.com/gustancho
LinkedIn: https://www.linkedin.com/in/gustan-cho/

 
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#2
Nick

Here is the blog that I wrote about doing a FHA 203k Loan on a mixed use commercial property.

https://gustancho.com/commercial-real-es...-financing

Dale

Can you please double check on the guidelines where there are no changes to this. I am copying others on this unique guideline on getting a FHA 203k Loan on commercial mixed use property.
Gustan Cho, NMLS 873293
Area Manager
The Gustan Cho Team at CrossCountry Mortgage Inc. NMLS 3029
address: 425 North Martingale Road Suite 1280, Schaumburg, IL, 60173
Website https://www.gustancho.com
Direct 800.900.8569
Email gcho@gustancho.com
Facebook: https://www.facebook.com/TheGustanChoTeam/
Google+: https://plus.google.com/+GustanChoLoans
Twitter: https://twitter.com/gustancho
LinkedIn: https://www.linkedin.com/in/gustan-cho/

 
Reply
#3
You are the BEST of the BEST Tate. Thank you so much and don't forget how much you and your team are appreciated.  I have never ever met such a phenomenal company like CrossCountry Mortgage and really thank you, your team and our President Ron Leonhardt and our Chicago LaGrassa Team. There are no words to express my appreciation on how much me and my team appreciate the CrossCountry Family.  Have a great day and thanks mega millions and then some. ??☉
Gustan Cho, NMLS 873293
Area Manager
The Gustan Cho Team at CrossCountry Mortgage Inc. NMLS 3029
address: 425 North Martingale Road Suite 1280, Schaumburg, IL, 60173
Website https://www.gustancho.com
Direct 800.900.8569
Email gcho@gustancho.com
Facebook: https://www.facebook.com/TheGustanChoTeam/
Google+: https://plus.google.com/+GustanChoLoans
Twitter: https://twitter.com/gustancho
LinkedIn: https://www.linkedin.com/in/gustan-cho/

 
Reply
#4
Hi Gustan,
 
It’s no problem at all, really! I applied for your FHA Connection ID and it was accepted for further processing. If all goes as usual, we should receive your User ID overnight and get it sent out to you tomorrow. If the application is rejected for any reason, you will be the sole recipient of the rejection email sent by FHA. Please advise if, by chance, this is received.
 
 
Have a wonderful afternoon,
 
 
Tate Hamilton
Systems Access Specialist
Cross Country Mortgage
6850 Miller Road || Brecksville, Ohio 44141
Gustan Cho, NMLS 873293
Area Manager
The Gustan Cho Team at CrossCountry Mortgage Inc. NMLS 3029
address: 425 North Martingale Road Suite 1280, Schaumburg, IL, 60173
Website https://www.gustancho.com
Direct 800.900.8569
Email gcho@gustancho.com
Facebook: https://www.facebook.com/TheGustanChoTeam/
Google+: https://plus.google.com/+GustanChoLoans
Twitter: https://twitter.com/gustancho
LinkedIn: https://www.linkedin.com/in/gustan-cho/

 
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