“Doing a 203K Loan on a Mixed-Use Property”
Hi Joe,
I have an estimate of cost to put in a kitchen for the property at 191 Providence Street. Contractor estimates $15,000. When would be a good time to speak with you or meet with you regarding the 203k loan? I am still blown away that you can do this type of loan on a mixed use property.
Thank you,
Karen
Yes, a 203K can be done on a mixed-use property. There are a couple of very important rules that need to be followed. The down payment in most cases is still 3.5%.
First, the residential space must be larger than the commercial space and the residential has to be at least 51% of the total square footage.
Second, the total number of units cannot exceed 4. It is possible to convert an additional unit or two into the other units to stay within the 4 unit maximum.
