Does anyone know of a lender that will do this program for a mixed use property?

the following is straight from the HUD website regarding mixed use properties:

A 203(k) mortgage may be originated on a "mixed use" residential property provided: (1) The property has no greater than 25 percent (for a one story building); 33 percent (for a three story building); and 49 percent (for a two story building) of its floor area used for commercial (storefront) purposes; (2) the commercial use will not affect the health and safety of the occupants of the residential property; and (3) the rehabilitation funds will only be used for the residential functions of the dwelling and areas used to access the residential part of the property.

any help finding a lender who would fund a deal like this would be much obliged..

thanks, Paul Karas

Try Freedom Mortgage.

Freedom will definitely do it.  Last year I took Freedom's 203k seminar --they make you take it before you can submit a 203k to them-- and they made a point of telling us that they will do mixed use on the 203K program.

Just called them and they stopped doing any sort of loans on mixed use proeprties 3 months ago.

im new to FHA, but are there any FHA lenders that would fund the purchase of a mixed use? the streamline 203k might work because the improvements would be minimal but so far ive had trouble finding a lender to do it

Paul Karas

Yes, there are a number of them that will. I would think Wells Fargo Home Mortgage would be one for sure. Nicholas is a national loan agent with Wells Fargo and very knowledgeable on all aspects of the 203k loan product. Any 203k consultant can also provide you with lender names who are local and will get this done for you like Dominic Valenti 

Thanks, we got this deal done a while ago.

We went through Wells but through a retail branch. Could not find a wholesale source to do the mixed use 203k.

Processing was a nightmare- applied in late August 09. didnt close til the middle of march 2010. Underwriters were totally incompetent however as i was told there was a big consolidation going on with UW centers. AND... right before the closing they cut the appraisal by 50K. wait 6 months to do a deal in a down market and its really no surprise. 

PK