All Forum Posts by: Chris A.

@Erik Estrada

If the commercial sqft is <50% of total sqft would that be a residential loan?

My lender said a residential loan would be fine for a mixed commercial and residential zoned property.

Quote from @Brandon Croucier:

Working on something similar now.

Zoning>Usage

This will be classified as a commercial property, therefore we need to lend on it as a commercial property. The terms aren't as attractive, but sometimes you have to take what you can get.

Thanks. If our intent is to live in a unit and rent out the other unit, will that be a residential or a commercial loan? 

Quote from @Erik Estrada:

What square footage is the commercial space? And is it possible to use the office as a residential space? 

If the goal is to finance this property with a DSCR lender, they may look at this property as mixed use. The terms are not as attractive on a mixed use loan compared to a 1-4 unit residential loan. You may also run into a roadblock if the commercial space is greater than the residential space. If that's the case you will need a commercial loan.

The commercial space is about 1600 sqft ft and the other unit is about 900. Yes, it's possible to live in the office space. 

So, if the commercial space is smaller than the residential space, then a residential loan should be ok? 

I have a question regarding financing. I found a property that is "residential use zoned commercial" and potentially can be used as a professional office. It has 2 units, both with bedrooms and full baths.

1, Would this property qualify for a residential loan or a commercial?

2. If at a future point, we wanted to use a unit as a professional office, would that change the loan terms? Would I need to disclose the possibility to the lender?

@Christopher Harris

DM sent.

@Brittany Minocchi

Thank you, Brittany. Do you mind DMing your contact?

Hello everyone long time lurker here. I'm curious to hear if anyone had success with doing HELOC for rentals/rental portfolio in California. Thanks in advance.