mixed use property
Mixed-use financing is available through a narrow set of specialized programs — the majority of lenders in the database explicitly exclude it. Viable paths are limited to JMAC Lending's Venice DSCR and AD Mortgage's DSCR and Foreign National programs, all investment-only, DSCR-qualified, and subject to stricter LTV and reserve floors than standard residential property types.
Lenders That Explicitly Exclude Mixed-Use Properties
- AmWest (Closed-End Second): "Ineligible Property Type: ... Mixed-Use Properties"
- Mega Capital (QM/Non-QM CES and DSCR - MVP): "Ineligible Properties: ... Mixed Use Properties"
- New Wave Lending (AQM Program): "Ineligible: C5/C6 rating, Mixed Use, Manufactured, Co-Op..."
- New Wave Lending (DSCR Prime): "Ineligible: ... mixed-use ... builder model leaseback ... boarding houses..."
- JMAC Lending (Balboa Non-Conforming): "Ineligible Properties: ... Mixed Used properties..."
- JMAC Lending (DSCR Prime): Mixed-use is not listed as an eligible property type (SFR, PUD, Condo, 2-4 Unit only)
- Forward Lending (HELOC): "Property Type - Ineligible: ... Mixed Use properties..."
Eligible Program 1: JMAC Lending — Venice DSCR
Covers 2–8 Mixed Use units on an investment basis.
LTV Matrix (2–8 Mixed Use, DSCR >= 1.00, Min FICO 720):
| Loan Amount | Purchase | Rate/Term | Cash-Out |
|---|---|---|---|
| $1,500,000 | 75% | 70% | 65% |
| $2,000,000 | 70% | 65% | 65% |
| > $2,500,000 | N/A | N/A | N/A |
Commercial Space Rules:
- "Commercial usage limited to retail / office / restaurant"
- "2–3 Units: Max 1 commercial; 4–5 Units: Max 2 commercial; 6–8 Units: Max 3 commercial"
- "Commercial space must not exceed 49.99% of the total building area"
- Vacant commercial space is not allowed for income qualification
Rent Analysis:
- Leased units: Use lower of estimated market rent or lease agreement
- Vacant residential units: Use 75% of market rents (max 1 vacant on 2–3 unit; 2 vacancies on 4+ units)
Other Key Rules:
- Minimum loan amount: $400K; Maximum: $3.0M
- Wholesale channel only
- Experienced investor required (history of owning/managing commercial or investment RE for at least 1 year in the last 3 years)
- First-time investors, first-time homebuyers, and Foreign National borrowers are not allowed
- ITIN borrowers: Not allowed
- Non-arm's length transactions: Not allowed
- 6 months PITIA reserves; 9 months for loan amounts over $1.5M
- State restrictions: CT, FL, NJ — Purchase max 70% LTV / Refinance max 65% LTV (min 720 FICO); Baltimore City, MD and Philadelphia County not eligible; Illinois not eligible
- Declining market: Max LTVs do not require a market adjustment for 2–8 mixed use
Eligible Program 2: AD Mortgage — DSCR Program
AD Mortgage explicitly lists mixed-use as an eligible property type under its DSCR program.
LTV Matrix — Mixed Use / Multifamily (Purchase / Rate-Term Refi):
| Min FICO | Max LTV | Max Loan Amount |
|---|---|---|
| 700 | 75% | $2,000,000 |
| 700 | 70% | $2,500,000 |
| 700 | 65% | $3,000,000 |
| 680 | 75% | $1,500,000 |
| 680 | 70% | $2,000,000 |
LTV Matrix — Mixed Use / Multifamily (Cash-Out Refi):
| Min FICO | Max LTV | Max Loan Amount |
|---|---|---|
| 680 | 70% | $1,000,000 |
| 680 | 60% | $1,500,000 |
| 680 | 50% | $2,000,000 |
Key Conditions:
- "Mixed Use Property (Max CLTV: 75; Min FICO: 680; Min LA: $400,000; DSCR ≥ 1.1)" — stricter than the standard 1.0 DSCR floor applied to SFR/1-4 unit
- Reserves: "For Mixed Use or Multifamily properties: min 6 months reserves" (regardless of loan amount)
- No DTI required (DSCR-only qualification)
Eligible Program 3: AD Mortgage — Foreign National Program
AD Mortgage also permits mixed-use under its Foreign National underwriting guidelines.
LTV Matrix — Mixed Use / Multifamily (Purchase / Rate-Term):
| Min FICO | Max LTV | Max Loan Amount |
|---|---|---|
| 700 | 70% | $1,500,000 |
| 700 | 60% | $2,000,000 |
| 700 | 55% | $2,500,000 |
| 680 | 70% | $1,500,000 |
| 680 | 60% | $2,000,000 |
| 680 | 55% | $2,500,000 |
| No FICO | 70% | $1,500,000 |
| No FICO | 60% | $2,000,000 |
| No FICO | 55% | $2,500,000 |
LTV Matrix — Mixed Use (Cash-Out, Foreign National):
| Min FICO | Max LTV | Max Loan Amount |
|---|---|---|
| 680 | 70% | $1,000,000 |
| 680 | 60% | $1,500,000 |
| 680 | 50% | $2,000,000 |
| No FICO | 70% | $1,000,000 |
| No FICO | 60% | $1,500,000 |
| No FICO | 50% | $2,000,000 |
Key Conditions:
- "Mixed Use Property (Max CLTV: 70; Min FICO: 680; Min LA: $400,000; DSCR ≥ 1.1)"
- No DTI required; 12 months reserves required
Agency Context: Fannie Mae
For residential condominium projects with commercial components:
"Fannie Mae requires that no more than 35% of a condo or co-op project or 35% of the building in which the project is located be commercial space or allocated to mixed-use."
For individual properties with a business use component:
"Fannie Mae purchases or securitizes mortgages that are secured by properties that have a business use in addition to their residential use, such as a property with space set aside for a day care facility, a beauty or barber shop, or a doctor's office." Special eligibility criteria apply at the agency level.
Quick-Reference Summary
| Lender | Program | Eligible | Key Constraints |
|---|---|---|---|
| JMAC Lending | Venice DSCR | YES | 2–8 units; commercial ≤ 49.99%; experienced investor; wholesale only |
| AD Mortgage | DSCR | YES | DSCR ≥ 1.1; min FICO 680; min $400K; 6 mos reserves |
| AD Mortgage | Foreign National | YES | Max 70% LTV; min FICO 680 or no FICO; DSCR ≥ 1.1; 12 mos reserves |
| AmWest | Closed-End Second | NO | Explicitly ineligible |
| Mega Capital | QM/Non-QM / DSCR-MVP | NO | Explicitly ineligible |
| New Wave Lending | AQM / DSCR Prime | NO | Explicitly ineligible |
| JMAC Lending | Balboa / DSCR Prime | NO | Explicitly ineligible |
| Forward Lending | HELOC | NO | Explicitly ineligible |
