Mixed-use property financing applies to properties that are comprised of multiple units zoned for different uses, including residential, commercial, industrial and institutional. Almost any building with at least two units of different usage qualifies for mixed-use financing.
Both business owners and real estate investors may seek a mixed-use property loan. Business owners will often live in one of the residential units and operate out of the commercial space while real estate investors will typically act as the landlord for both the residential and commercial tenants.
While residential tenants provide a more stable source of rental income, commercial tenants, such as ground floor retail, are usually willing to pay more for rent. Therefore, commercial tenants play an important role in evaluating the revenue potential of mixed-use properties. As a result, the value of two different buildings in the same area may differ simply because of the composition of their tenants.
Financing for mixed-use buildings.
Our experience in providing mixed-use property financing allows us to see the potential that other less-experienced lenders may miss.
Our mixed-use property financing program offers your investors easy qualification on the purchase or cash-out refinance of a mixed-use building and includes the flexibility to remain in the loan for up to 30 years.
Loan Criteria:
- Amount: $1 million to $20 million
- Property types: Retail, Mixed-Use, Office, Multi-Family, Light Industrial/Warehouse, Single Family Residence (non-owner occupied), Special-purpose properties
- Lending Area: Nationwide
- Term: Up to 24 months
- Maximum LTV: Residential – 80% can base on Stabilized Value/Proforma Value/After-Repair Value (ARV); Commercial – 75% can base on Stabilized Value/Proforma Value/After-Repair Value (ARV)
- Maximum LTC: 80% based on Total Project Cost
- Repayment: Interest Only (IO)
- Lien Position: 1st Lien
- Lender Loan Fee: Varies
- DSCR: Interest Reserve Available
- Funding may including: Purchase Cost, Refinance Cost, Rehab Cost, Interest Reserve, Tenant Improvement, Cash-Out
