A Shop Below, A Home Above.
Properties zoned mixed use can be financed when the property remains primarily residential in nature.
Zoning alone does not decide it
What matters is whether the property is primarily residential.
- Properties zoned commercial or mixed use are addressed specifically in the guidelines.
- Mixed-use properties are defined in accordance with Fannie Mae guidelines.
- A mixed-use property is acceptable where it remains primarily residential in nature.
- Mixed-use properties which are not primarily residential in nature are not eligible.
- The appraisal considers the split between residential and commercial space.
- Eligibility turns on the specific property rather than on the zoning label alone.
Mixed-use zoning addressed
Defined per Fannie Mae
Must be primarily residential
Non-residential use excluded
Space allocation reviewed
Assessed property by property
What is a Saxton mixed-use property loan?
Financing a home that also contains commercial space.
Plenty of good housing sits above a storefront. A flat over a shop, a house with a converted front room operating as a small business, a building where part of the ground floor is let commercially. Buyers find these properties and then discover that a lot of lenders stop at the zoning designation and decline.
The guidelines are more nuanced than that. Properties zoned commercial or mixed use are addressed directly, and a mixed-use property is acceptable where it remains primarily residential in nature. Mixed-use properties are defined in accordance with Fannie Mae guidelines, so the definition is not something a lender invents case by case.
The line is drawn at primarily residential. Mixed-use properties which are not primarily residential in nature are not eligible. In practice the appraisal looks at how the space is allocated between residential and commercial use, and that allocation is what decides the outcome. Sending us the listing and the appraisal early is worth doing, because the answer depends on the specific property rather than on the zoning label.
Why bring a mixed-use property to Saxton?
For buyers who have found the right home attached to the wrong zoning designation.
Zoning Is Not The Whole Answer
A commercial or mixed-use designation does not end the conversation. What matters is whether the property is primarily residential.
A Defined Standard
Mixed-use is defined in accordance with Fannie Mae guidelines rather than left to interpretation, which makes the answer more predictable.
The Allocation Decides It
How the space divides between residential and commercial use is the deciding factor, and the appraisal is where that gets established.
We Will Say No Clearly
If a property is not primarily residential it is not eligible, and we would rather tell you that in week one than let it run.
Send The Listing Early
This is a property level question. The faster we see the details, the faster you get a real answer.
The Appraisal Settles It
How the space divides between residential and commercial use is established in the appraisal, and that is what decides eligibility.
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers about financing a mixed-use property.
Often yes. Properties zoned commercial or mixed use are acceptable where the property remains primarily residential in nature.
It refers to the character and use of the property rather than the zoning label. The appraisal establishes how space is allocated between residential and commercial use.
A mixed-use property which is not primarily residential in nature is not eligible. That is the clearest line in the guidelines.
The appraisal addresses the split between residential and commercial space, and that assessment drives the eligibility decision.
Yes. Mixed-use properties are defined in accordance with Fannie Mae guidelines, so it is not left to each lender to decide independently.
It can. What matters is the property character rather than your plans alone, but tell us what you intend so we can assess it properly.
The listing and, if you have it, any prior appraisal. Mixed-use eligibility is a property specific question and those documents answer it fastest.
Find out what you qualify for
If you have found a home attached to commercial space, send us the listing. Whether it works comes down to the property itself.
Get Pre-Qualified*Eligibility for mixed-use properties is subject to program guidelines, appraisal, title review and credit approval. Mixed-use properties are defined in accordance with applicable agency guidelines and must be primarily residential in nature. Properties which are not primarily residential are not eligible. Not all applicants or properties will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.