Hi,

I have an interest in purchasing a mixed use property, it is a office space below and a 3 bedroom apartement above. Though currently it is zoned as general business, I would like to convert the office portion to an extention of the residential apartement that I would be occupying. I haven't had much luck with my real estate agent/and financer guiding me through this process or giving me options. I understand that commercial loans are harder to come by especially if you do not have the 20-30% downpayment required. At this point the seller is asking for 75000, I could probably swing a 10% downpayment. I have a good credit score, make about 25,000 a year, and have been approved for a 80000 residential mortgage. Ultimately I would like to have this done as a residential loan since this is will be the main purpose of the building if it sold to me.
If anyone has experience in Storefront to Residential converting, commercial vs. residential loans, low down payment commerical loans, rezoning commercial for residential, etc I would appreciate any advice.

Thank you,
Crystal

Dear LoanUniverse,

Pease help if you can.

Thanks,

crystal.d

Crystal:

I would try to get a regular residential loan for the property. The reason why I have not commented is that I am not sure if the zoning precludes you from getting that kind of financing.

Otherwise, you could try:

1- Seller financing for the 90% you don’t have.
2- Seller financing for 10% to 20% and approaching a banker regarding the matter. Even if they put you into a commercial loan, you should be able to make the payments.

Sorry Crystal, but I have never seen anything like this before {small loan amount, mixed use}.

Thank you for your response...

I appreciate it!

Crystal,

I have two lenders that I can run your scenario through contact me via PM so we can discuss you deal in private besides what you have given me. Residential is what I will shoot for since I have two lenders that will do it. If I get into Hard Money than I will stop. If I get into Commercial I will stop unless it makes sense for you. The Loan Amount is what is pushing many people away but I dont care since I like a bigger referral basis.

Jason