FHA Mixed Use Question

[Joe H.]

So I found out you can now use FHA to acquire mixed use properties with up to 49% commercial component. The multifamily market in my area is totally overwrought (if you can even find something on the market at all) so I'm thinking of advising a client to pursue a mixed use building.

My one question would be how the FHA counts commercial storefronts from a unit count perspective. Is each separate storefront a "unit"? The line is very clear with pure multifamily, but sometimes you might have a building that has 3 big residential units that are 1000 SF each and then 600 SF of storefront divided into two tiny little storefronts. Do each of those count as a "unit" thereby making it a 5 unit building and ineligible for the loan? Seems very odd to me that FHA ever started allowing mixed use, but I sure want to find out how to best take advantage of the program given the newish rules allowing it.