Carlos Scarpero- Dayton and Cincinnati Ohio Mortgage Broker

Mixed-Use Mortgage Loans In Ohio

Are you looking for a mixed-use mortgage loan in Ohio?

I can help!

As a full service mortgage broker with 110 different lenders to choose from, I have access to several mixed-use mortgage programs including Conventional, FHA, VA and Commercial.

Take the 30 second mortgage quiz to see if you qualify

Types Of Mixed-Use Mortgage Loans In Ohio

Home buyers throughout Ohio have a lot of different options when it comes to choosing a mixed-use mortgage program. 

Here are the most common mixed-use mortgage types that you can get in Ohio.

VA Mixed-Use Mortgage Loans In Ohio

The VA mortgage program gives Ohio home buyers a way to buy a property that is “primarily residential”. In other words, up to 49% of the property can be commercial. 

The VA home loan also allows veterans a way to combine the commercial usage of the home with a residential space.

You can also use the VA home loan to purchase a multifamily home that has a commercial space. Veteran home buyers can have up to four residential units in addition to the commercial space.

Per VA underwriting guidelines, you would be required to live in at least one of the units on the property.

The commercial space can be rented out if you do not want to use it for your own business.

Like any VA home loan, this program would not require mortgage insurance. Instead of mortgage insurance, there is a one-time funding fee, which can be waived for disabled vets.

Related blog post:
Can you buy a mixed-use property with a VA home loan

Take the 30 second mortgage quiz to see if you qualify

FHA Mixed-Use Mortgage Loans In Ohio

The FHA mortgage program gives qualifying home buyers in Ohio an opportunity to purchase a mixed-use property. 

Per FHA underwriting guidelines, you can have up to 4 residential units on the property in addition to the commercial property space.

According to FHA guidelines, at least 51% of the home’s space must be designated for residential use.

Additionally, you will be required to show that the commercial use will not affect the health and safety of the home owners.

You are allowed to collect rent on the commercial space.

FHA also allows you to renovate a mixed-use property through the FHA 203k loan program.

If you are doing a 203k loan on the property, you are only allowed to use renovation funds on the residential portion of the space. 

Conventional Mortgage Loans In Ohio

Home buyers in Ohio can also get a conventional mortgage loan on a mixed-use property that is primarily residential in nature. 

The property can only be used as an owner occupied property when using conventional mortgage financing. 

Investment and multi-unit properties are not allowed on the mixed-use program when using conventional mortgage financing.

The property owner must also be the business owner in the commercial space.

Normal mortgage insurance guidelines would apply when purchasing a mixed-use property. If you are putting less than 20% down, then mortgage insurance would be due.

Commercial Mortgage Loans In Ohio

Take the 30 second mortgage quiz to see if you qualify

Commercial mortgage loans allow Ohio home buyers to be more flexible when getting a mortgage to get a mixed-use property.

You can get a lot more creative in your financing opportunities.

For example, when applying for a commercial mortgage, you can use DSCR, also known as a debt service coverage ratio, which allows you to use the property’s cash flow for qualifying purposes.

There are also no requirements for the residential use percentage when getting a commercial mortgage loan on a mixed-use property.

Mixed-use commercial properties are great for investors and a way to build wealth through real estate.

About Mixed-Use Mortgage Loans In Ohio

Down Payment Required: Varies per program and lender rules

Minimum Credit Score: Varies per program but it’s very hard to get approved if your credit score is below 620.

Frequently Asked Questions About Mixed-Use Mortgage Loans

What Is A Mixed-Use Mortgage Loan?

A mixed-use mortgage loan is a type of residential mortgage financing offered for properties that are simultaneously used for residential and commercial purposes. These properties are known as mixed-use properties and can include a variety of structures such as apartment buildings with ground-floor retail, storefronts with residential areas above, or single-family homes with dedicated office spaces. The key characteristic of a mixed-use property is that it combines residential and commercial spaces within the same structure, allowing for a blend of living and working environments. 

In order to obtain a mixed-use mortgage, the property must be zoned for mixed-use purposes.

Mixed-use mortgage loans are particularly appealing for individuals who own their own businesses or operate a side business from their home. They offer a way to consolidate living and working spaces, potentially reducing commuting time and expenses. However, obtaining financing for a mixed-use property can be more complex than for a traditional residential or commercial property due to the unique nature of the property and the dual use it serves. Lenders may require higher credit scores, larger down payments, and a thorough review of the property’s ability to function as both a residential and commercial space.

In summary, a mixed-use mortgage loan is a specialized form of residential financing designed for properties that serve both residential and commercial purposes. It caters to homeowners who wish to integrate their living and business activities within the same property, offering a unique blend of convenience and flexibility. However, due to the specialized nature of these properties, obtaining financing can be more challenging and may require meeting specific lender requirements.

What are the advantages of obtaining a mixed-use mortgage loan?

Obtaining a mixed-use mortgage loan offers several advantages, particularly for those who own or invest in properties that serve both residential and commercial purposes. Here are the key benefits:

  • Less Risk to Borrowers: Mixed-use properties provide a diversified income stream. If one tenant leaves, income can still come from other tenants or renters, reducing the risk associated with losing a single source of income

  • Convenience for Consumers: Mixed-use properties can offer a wide range of businesses, increasing consumer traffic. This convenience is particularly appealing to residents who can access various services without needing to leave their neighborhood 

  • Environmental Benefits: Mixed-use properties can be more environmentally friendly by combining residential and commercial spaces on less land. This approach reduces the need for extensive land use for commercial purposes, leading to less pollution and a more sustainable urban environment. It also encourages walkability, reducing the reliance on cars and potentially lowering carbon emissions 

  • Diverse Tenant Market: Investing in mixed-use properties can lead to a more diverse array of tenants, creating vibrant, interesting communities that can enhance the property value of the entire neighborhood 

  • Increased Property Value: The high demand for mixed-use properties can make them a less risky investment. Diversifying investments across multiple types of properties can also provide a safer investment strategy, as income is not solely dependent on a single tenant 

  • Convenience for Residents: Mixed-use properties often offer easy access to public transportation, shops, workplaces, and restaurants, making them more convenient for residents. This convenience can lead to higher property values and a more desirable living environment 

  • Sustainable Real Estate: Mixed-use properties contribute to sustainable real estate practices by conserving land and natural resources through compact development. Improved walkability also reduces pollution, as residents are less likely to use their cars 

These advantages make mixed-use mortgage loans an attractive option for both investors and homeowners looking to integrate residential and commercial spaces within the same property. However, it’s important to note that obtaining financing for mixed-use properties can be more complex and may require meeting specific lender requirements.

Take the 30 second mortgage quiz to see if you qualify

Where In Ohio Do You Offer Mixed Use Mortgages?

I am licensed to originate mixed-use mortgages throughout Ohio, including:

Akron, Beavercreek, Bowling Green, Brunswick, Canton, Cincinnati, Cleveland, Cleveland Heights, Columbus, Cuyahoga Falls, Dayton, Delaware, Dublin, Elyria, Euclid, Fairfield, Findlay, Gahanna, Garfield Heights, Grove City, Hamilton, Hilliard, Huber Heights, Kent, Kettering, Lakewood, Lancaster, Lima, Lorain, Mansfield, Maple Heights, Marion, Mason, Massillon, Medina, Mentor, Middletown, Newark, North Olmsted, North Ridgeville, North Royalton, Parma, Reynoldsburg, Riverside, Sandusky, Shaker Heights, Springfield, Stow, Strongsville, Toledo, Trotwood, Upper Arlington, Warren, Westerville, Westlake, Willoughby, Wooster, Xenia, Youngstown, and Zanesville and everywhere in between.

I am licensed to offer mixed-use mortgages in all 88 counties in Ohio, including:

Adams, Allen, Ashland, Ashtabula, Athens, Auglaize, Belmont, Brown, Butler, Carroll, Champaign, Clark, Clermont, Clinton, Columbiana, Coshocton, Crawford, Cuyahoga, Darke, Defiance, Delaware, Erie, Fairfield, Fayette, Franklin, Fulton, Gallia, Geauga, Greene, Guernsey, Hamilton, Hancock, Hardin, Harrison, Henry, Highland, Hocking, Holmes, Huron, Jackson, Jefferson, Knox, Lake, Lawrence, Licking, Logan, Lorain, Lucas, Madison, Mahoning, Marion, Medina, Meigs, Mercer, Miami, Monroe, Montgomery, Morgan, Morrow, Muskingum, Noble, Ottawa, Paulding, Perry, Pickaway, Pike, Portage, Preble, Putnam, Richland, Ross, Sandusky, Scioto, Seneca, Shelby, Stark, Summit, Trumbull, Tuscarawas, Union, Van Wert, Vinton, Warren, Washington, Wayne, Williams, Wood, and Wyandot.

Do You Offer Mixed-Use Mortgages In Any Other States?

Yes, I can originate mortgage loans on mixed-use properties anywhere that I’m licensed.

I’m licensed in: Ohio, Kentucky, Indiana, Texas, Florida, Alabama, Tennessee, Arizona, Virginia, Michigan, Missouri, and Illinois.

Additionally, I can originate mortgages on mixed-use properties in over 30 additional states through our corporate referral program.

Take the 30 second mortgage quiz to see if you qualify

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