A mixed use is a property that has a mix of residential and commercial tenants of tenants. The most common example would be an apartment building with apartments above and office or retail space on the ground floor (s). Another example could be a free standing retail space in the same plot of land as a single family residence. The tenant mix of ownership, size of the loan, properties and other characteristics can have a significant impact on the different lending options available.
The types of tenants and rent paid by them are an important factor to consider in underwriting. A property that has most of the rents paid by tenants of the residential can be viewed and signed more like an apartment commercial mortgage loan. Like wise, in a property that has most of the rents paid by tenant’s commercial mortgage can be viewed and signed more like an office building or retail. A mixed-use property owner may be occupied or not occupied holder. The borrower can have a business in a commercial area or they may live in the building, however, if they live in the building can have an impact on the type of loan that can be offered.
Structure:
Mixed-use commercial property is generally commercial mortgage loans written with 5, 7, 10, 25 and 30 years with or without balloons. In general for a borrower is expected to buy a record 20% plus closing costs. We offer a mixed-use commercial mortgage loans with only 10% depends on the borrower occupying space in commercial construction as a tenant.
Documentation:
For this type of loan expected to provide all documentation on the property to include the income and expenditure statements of property or property tax and rent roll. If the loan is a refinancing is expected to provide any property of third parties, such as job evaluations, environmental reports, the working title, or copies of the notes. If the borrower occupies space as a commercial tenant who is expected to provide financial aspects of the business.
This type of loan can be taken in the name of the person or entity not individual, as a corporation, however, the borrower or the people who have property in the holding company is also expected to guarantee the loan. As such that no one is personally guarantee the loan is also expected that the personal tax returns, personal financial statements, and are entitled to credit.
