Profile picture for DerekMitchell

Mortgage for home with small retail space?

Hello, all -

I'm looking to buy a home and I've found one that I love, but it's a downtown building with a small retail space on the first floor, and 2.5 floors of residential living space above. 

I'm having trouble finding residential financing for this. I've talked with a couple of lenders and both told me it would be a 'commercial' purchase since it has the retail unit (even though the retail space is only about 1/4 of the square footage). 

Any tips on how to make this happen? I'd ideally like to find a 10% down program to facilitate the purchase.

Thanks so much!
  • April 03 2013 - Portland
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Answers (3)

If this is going to be an owner occupied home you should have no trouble. [Promotion and email removed by Zillow moderator. Please see our Good Neighbor Policy for guidelines.]
  • January 13
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Profile picture for TimMcClary
I think it all depends if this will be owner occupied.  If you live in it, you may be able to get conventional financing.  Might be worth talking to a few banks.  Sometimes loan officers get ideas in their heads and aren't willing to look outside the box for ideas.  I recommend using a local bank that's familiar with the area.  Please feel free to contact me with any questions that come up.
  • June 22 2013
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What would you use the retail space for?
  • May 03 2013
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