Hello all,

can someone please point me in the right direction? The borrower wants to buy a house where she has her business (elderly care). Its a 4 bedroom house in a nice area near SF. She also wants to move to the subject property (make the house her primary residence, instead of her current condo - she wants to rent out the condo, btw). The borrower says moving to the house will help generate more revenue not to mention she will signinficantly improve the quality of service to her clients. She has 20% down and the house is short sold. Perfect credit, in addition to the business income she has W2 job as a manager of a boutique shop.

Is she eligible for conventional financing? I remember, before even fannie allowed up to 4 or 5 tenants. But I bet it changed. What would be the best way to finance this type of transaction? 

Thank you!

Natallia

While there are many issues that may arise with this transaction, Fannie Mae allows group homes occupied by the purchaser to be treated as a owner occupied loans. Of course lenders may have their own overlays.

that's how it used to be, but I can't find the guideline anymore (still going through the stuff). Even harder will be to find the lender :(

One lender so far told me it is possibly an SBA loan.

Thank you for replying

It's on page 224 of the seller's Guide

Part B, Origination Through Closing
Subpart 2, Eligibility
Chapter 3, Occupancy and Property Eligibility
October 30, 2009

http://www.efanniemae.com/sf/guides/ssg/