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.
- 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?
The Gustan Cho Team at CrossCountry Mortgage Inc. NMLS 3029
address: 425 North Martingale Road Suite 1280, Schaumburg, IL, 60173