If the property contains both residential units (like an apartment) and a commercial space (like a shop on the ground floor), you may be able to use a residential mortgage if it meets specific criteria:
: These loans are generally restricted to properties with 1–4 units . Once a building has 5 or more units, it is almost always classified as commercial. 2. Properties with Up to 4 Units buying a commercial property with a residential mortgage
While the mortgage on the commercial property must be a commercial one, you can use your to help: If the property contains both residential units (like
In general, you buy a purely commercial property with a standard residential mortgage . Residential mortgages are strictly for properties intended for personal housing, while commercial properties are viewed as higher-risk business assets and require specialized financing. Properties with Up to 4 Units While the
Commercial Mortgages Explained | FAQs | NatWest Business Banking
: Most lenders, including the FHA , require the property to be at least 51% residential by floor area.
However, there are a few specific scenarios where the lines between residential and commercial financing can overlap: 1. Mixed-Use Properties (Residential + Commercial)
