FHA Commercial/mixed Use

[David Robinson]

current zoning: commercial. Current use residential. Legal grandfathered. Will FHA insure? Building design is commercial, but I'm guessing that's a secondary issue to deal with later.

 

[hastalavista]

I believe they do and that will be an issue to deal with later!

 

[David Robinson]

Yeah, I'm getting a higher fee if they approve it, but I hope the assignment gets cancelled at this point.

 

[Rob Frazier]

IF the property cannot be rebuilt by right if damaged or destroyed, it is ineligible. what does the zoning say?

 

[Tom D]

i believe the commercial space usage in a residence could be around the 25%, maybe more. with gentrification i see industrial zoning on condos & townhouse puds. be careful about an actual mixed use property. many state boards don't consider a residential appraiser qualified to do the highest and best use of this type of property. if the owner has a business, like day care, then FHA has a per cent allowable of the dwelling.

 

[RSW]

I recently had a VA appraisal on a commercial building that was being used as a SFR. SFR is allowed by current zoning. I spoke with a USPAP instructor and another CG about it and they both said my license level did not qualify me to do a H&BU analysis. The CG helped me to do the H&BU analysis. The H&BU is commercial and to appraise it as a SFR would be an interim use which has a different definition of MV than that in the URAR. It took 3 weeks for the Lender to decide to cancel the appraisal.

 

[andrew81]

(5) Mixed Use of Property
Mixed Use refers to a Property suitable for a combination of uses including any of
the following: commercial, residential, retail, office or parking space. Mixed Use
one- to four-unit Single Family Properties are eligible for FHA insurance,
provided:
- a minimum of 51 percent of the entire building square footage is for
residential use; and
- the commercial use will not affect the health and safety of the occupants
of the residential Property.

d. Mixed Use One- to Four-Unit Single Family Properties
i. Definition
Mixed Use refers to a Property suitable for a combination of uses including any of the
following: commercial, residential, retail, office or parking space.
ii. Required Analysis and Reporting
The Appraiser must include all components of the real estate in the analysis. The
Appraiser must not include business valuation or the value of Personal Property or
business fixtures in the appraisal.
The Appraiser must provide measurements and calculations of the building area on the
building sketch to show what portion of the Property is allocated to residential use, and
what portion is allocated to non-residential use.
The Appraiser must provide a statement as to whether the commercial use will or will not
affect the health and safety of the occupants of the residential Property.

 

[Michigan CG]

.......Building design is commercial......................

Um, at least you are getting a higher fee..........