FHA Loan for Mixed 4 Unit Residential 1 Unit Commercial Property

[David Horowitz]

Hi Everyone!

I've been doing some research, and landed on a question that I don't know the answer to. It is clear that an FHA 203(k) loan can be used to purchase a mixed use property under the following conditions:

1. No more than 49% of the total floor space is devoted to commercial use
2. There are no more than 4 residential units

Following this logic, a building that had four residential units, and one commercial unit, would be able to be financed under FHA.

Can anyone here confirm or comment on this? Or ever seen it before? I realize it is a rather niche question.