Ready, Set, REAL ESTATE! Ep. 199 'How to purchase a Mixed Use Property with FHA Home Loan'

·45 min·4 clips

FHA allows mixed-use property purchase if no more than 49% of floor space is non-residential.

Lisa Gillette opens the episode by celebrating the show's consistency, noting it's the 199th episode and approaching five years. She shares personal updates, including returning after a hiatus and passing school grades. The host promotes an upcoming free community workshop on deed and mortgage fraud prevention, sponsored by Southwest Escrow Corporation. She transitions to the main topic: purchasing mixed-use properties with FHA loans. Gillette defines mixed-use properties as combining residential and commercial uses, such as storefronts with housing units. She explains that FHA loans require the property to be primarily residential, with no more than 49% commercial floor space. The host details the benefits, including lower down payments compared to commercial loans. She clarifies that FHA insures loans but is not the lender, and discusses first-time home buyer rules, including exceptions for divorcees. Gillette emphasizes the importance of front-loading deals by checking zoning and underwriting guidelines early. She advises working with mortgage bankers who have access to underwriting teams. The host identifies opportunities in gentrifying areas where aging owners are selling properties through probate or trust sales. She highlights the appraisal process as critical, with appraisers evaluating adverse elements like noise or pollution. Gillette concludes by encouraging listeners to subscribe and share feedback for future topics.

As heard by us

A direct FHA answer turns into a grounded look at mixed-use income and the professional checks buyers still need.

Episode 199 answers a practical FHA question for first-time buyers looking at mixed-use property, then broadens into a useful primer on the line between residential and commercial space.

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Why you'd press play

You can test whether an FHA loan might fit a first-time-buyer plan for a mixed-use property.

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