Hi - typically Mixed Use properties are going to require a traditional commercial real estate loan from a bank, small balance commercial private lender or for the larger ones a CMBS style loan.However, a newer "DSCR Loan" product for Mixed Use is making a comeback - which is a really great option for smaller properties/more beginner investors since it has all the same trappings as a residential DSCR Loan (30-year fixed, easy qualification, straightforward process) for a property with commercial units.Generally going to be limited to 8 units max and has to be primarily residential in every way (majority residential by units, square footage and rents) but if it fits all that, its a great option

DSCR Loans are typically great for STR purchases - however, DSCR Lenders are going to require at least some "skin in the game" - so won't be able to have a 2nd lien for the down payment. 

Do different lenders have different requirements to qualify? 

We have used over a million dollars from investors in the past for individual deals, but ever since launching the fund it has become extremely hard to raise money compared to past deals, but we changed our terms to be more favorable to the LP’s. 

Talk with a few lenders about using the equity in his current house. 

Is it listed around the comparable prices for homes sold?  

You'd have to get the seller on board with that though and presents additonal risks going that route with the lender and what not.Are you sure you have to live there though?

Create a simple spreadsheet or written list to compare the features of each and identify the ones that align with your requirements.

. - Lenders are not balance sheet lenders.

Note this is my first time dealing with this loan broker and lender.