Mixed-Use Property Loans
Somerville Bank offers Mixed-Use Property Loans in Ohio and Indiana, for properties that don’t fit in a single conventional loan category.
There are many instances in which a property may be combined and assessed as more than one type, be it rural and residential, residential and industrial, or commercial and residential. In these cases, you may find yourself requiring a mixed-use property loan. We can help you get the money today for tomorrow’s endeavors.
What are Mixed-Use Loans?
The mixed-use loan is a specially-designed loan that is intended to assist investors in real estate and owners of businesses finances buildings that are used for multiple purposes. The buildings that qualify for these types of loans are commonly zoned for different types of usages. In most instances, different components of these structures are classified as being “commercial”, “cultural”, “industrial”, “institutional”, and/or “residential”. The loans that are provided to the owners or aspiring owners range from a period of as little as 6 months to as much as 30 years.
What is Assessed During the Loan Process?
If you are interested in obtaining a mixed-use loan for property, there are several unique factors that banks will review and consider in order to determine if you are eligible for approval. The following outlines the most common considerations:
- Where the property is located
- The income of the applicant
- The financial status of the applicant
- The tenancy and lease specifications associated with the property
- The yield rate and the cap rate
- How much the bank determines the property is worth
- The term that is sought
- The amount of money that is being requested
- The credit score of the applicant
- The employment of the applicant
How it Works
When you obtain a mixed-use loan, you are using a combination of loans made possible by private lenders and hard money that is used on a short-term basis. These may also be made possible as a result of loans that are backed by the government and loans that are commercial-based. According to our specifications, any structure that has multiple zoning specifications qualifies. The most common type of mixed property that we deal with are those that are considered to be both residential and commercial. An example of a mixed-use property is as follows: an individual elects to open up a barbershop on the ground floor of a building that is zoned commercial downstairs and residential upstairs. They live on the top floor and work on the ground floor in their business.
The Bottom Line
If you want to finance a mixed-use building, a mixed-use loan offered here at Somerville Bank is the way to succeed in your endeavor. If you have a solid credit history, established employment, a positive financial record, and the desire to increase your income, our mixed-use loans can give you the power and leverage that you need to achieve success!
If you’d like to learn more about mixed-use property loans and want to start the application process, you may visit us at one of our 8 locations.
These include our Ohio Locations: North Eaton, South Eaton, Somerville, Camden, Oxford, Hamilton, New Lebanon, and the Mortgage Center in Richmond Indiana.
For more information, simply contact one of our friendly lenders and we will be more than happy to assist you.