Looking to purchase home with a commercial business attached to it
I am looking to purchase a $350K home, however the previous owners converted their garage into a restaurant that is attached to the home. It has been out of business for a few years but they are selling it with all the restaurant equipment. I am not looking to open a restaurant but I would like to utilize the space as some kind of community business. Initially, I wanted to see if it would qualify for a USDA loan, it is in rural Iowa & the location does qualify but I was advised that whether or not the property qualifies is only up to the appraiser. I have a good credit score of 720-730, salary is $73K and I have no debt. I just paid off my car note & I don't carry balances on my credit cards. I am ready to find my dream home & tired of renting. I would qualify as a first time buyer as well. Can someone please tell me what kind of mortgage loan I can get with little down. I am interested in utilizing the avail DPA & closing programs that are available as well. I want to take advantage of anything that is avail for new home owners that work hard for what they have. I could most likely come up with $15K which would come from my bank account & a portion from my 401K. Also can you advise on any kind of loans that would cover work/live space and loans that allow you to get more money than the cost of the home so that one can do renovations if need be? by twanabond72873 from , Missouri. Sep 21st 2021
Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 2,431 contributions
Most lenders DO NOT lend on Split use (or multi-use) property, and I am aware of NO DPA programs that will. For USDA loans, the appraiser does NOT determine if the property location qualifies for USDA or not, but will establish if the commercial space has value USDA could consider. There are commercial programs available with restrictions as to business use. I do not believe the USDA commercial loan program will work for a TBD business. You should find a USDA specialist in the area of where the property is located to determine what your options are.Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ Certified by The National Association of Mortgage Professionals as a Certified Veterans Lending Specialist.www.ApplyYes.com 480-889-9000 - OR - 480-695-9300.
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,843 contributions
For THIS property, you are going to need a one off commercial loan from your local community bank. Your traditional RESIDENTIAL mortgage loans follow a mantra known as "current and best use." Even if you wish to turn it onto something else. Mixed use properties are a problem. What traditional loans DO ALLOW is very minor mixed use, like a daycare or a small one room Doctors office. Residential USDA is even more restrictive, that anything that could even remotely be thought of producing income will be denied. I lend in Minnesota, Wisconsin, Iowa, North Dakota, and SOuth Dakota. I can be found at JoeMetzler.com. Cambria Mortgage, NMLS 274132
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