FHA loan with Commercial Property

[Alden Graham]

So I found a great property that I was interested in that I wanted to house hack with. There is commercial rental on the first floor that I would like to take advantage of but was curious if an FHA loan is possible or does that disqualify the property?

[Stephanie P.]

Originally posted by @Alden Graham:

So I found a great property that I was interested in that I wanted to house hack with. There is commercial rental on the first floor that I would like to take advantage of but was curious if an FHA loan is possible or does that disqualify the property?

MIXED USE PROPERTIES

You may purchase a mixed-use property with an FHA loan that is essentially a combination of residential and retail or commercial space. What is most important is for a minimum 51% of the total square footage of the building must be residential. This is because FHA loans are primarily for residential homes.

Commercial space is allowed if its use does not negatively impact the health and safety of the residential occupants. For example, if some of the space is being used for the production of spices, the smells cannot make the living conditions unbearable or unhealthy for the residents living in the building.

 https://fhalenders.com/fha-mul...

Mixed use is allowed

Stephanie