FHA loan and commercial land use

[App601]

I have read in many publications that partial commercial use of the land is not acceptable for an FHA loan. But is is written in the HUD 4000.1 manual? It is extensive and I did a thorough search and found nothing. Is there an FHA Guru that can cite page and section if it is written somewhere?

I am appraison a rural property. It consists of a main unit lived by the owner, Is has an apartment used for airbnb. It has over 2 acres of land and it is used to rent a pair of rooms and several tents as it is in a mountain rounded with green nature. The land. or its largest part is used for commercial purposes. You can even bring your own camper and pay a fee.

It is my belief that it does not qualify for an FHA loan, but my source is AI and not the actual HUD manual Is is written there? Please help

 

[Tom D]

FHA will let you have a business in your home if it takes up less that 25 or 33%, i forget. But what you describe doesn't match their commercial part. And what zoning, oh your rural, it has no zoning or anybody who cares about it. I say your foot is in the bear trap ready to snap if you do it. I did tons of FHA.

 

[App601]

FHA will let you have a business in your home if it takes up less that 25 or 33%, i forget. But what you describe doesn't match their commercial part. And what zoning, oh your rural, it has no zoning or anybody who cares about it. I say your foot is in the bear trap ready to snap if you do it. I did tons of FHA.

Fortunately case was cancelled after I gave a complete description without inspecting
One main house owner occupied
One apartment rented for airbnb
One RC apartment with no kitchen and a shared bath ( in between the rooms like a hotel but only one bath
A couple of tents for nature lovers
Ample space for campers

I only wanted to find support in the 4000.1 but I have found nothing

Thanks

 

[Terrel L. Shields]

Doesn't anyone know how to read the 4000.1? And the property is a mixed use property.

 

[App601]

What about the land use? More that 51%of the land use is commercial
Is there something written in the 4000.1?

Please see this link and tell me if you believe it can be refinanced with an FHA loan Mine s that it needs a commercial loan

Jubilee Campsite Swim & Paint, Las Piedras, Puerto Rico

Jubilee Campsite Swim & Paint offers accommodations in Las Piedras, 30 miles from Fort Buchannan.

www.booking.com

Also I read that the commercial use must be subordinate to the residential use. In this case the H&B use id commercial
However, I can not find anything that says so in the 4000.1 and I searched for the words "subordinate" "highest" in the HUD manual and found nothing


Best regards and thanks for replying

 

[Tom D]

You keep arguing that you can't find anything commercial in FHA, cause there ain't no commercial uses in FHA loans. They only allow the owner to use part of their dwelling for their business or profession, not anybody else's business. When you only have a building mentioned with some business use, but no land, then there is no land with commercial uses. The house does not have to have commercial zoning or be mixed use, but the use by the owner must be allowed by zoning, Residential zoning here allows a lawyer having his office in his own home, still being zoned 100% residential. FHA mixed use is still the owner using part of the building for their business, or profession.

 

[App601]

You keep arguing that you can't find anything commercial in FHA, cause there ain't no commercial uses in FHA loans. They only allow the owner to use part of their dwelling for their business or profession, not anybody else's business. When you only have a building mentioned with some business use, but no land, then there is no land with commercial uses. The house does not have to have commercial zoning or be mixed use, but the use by the owner must be allowed by zoning, Residential zoning here allows a lawyer having his office in his own home, still being zoned 100% residential. FHA mixed use is still the owner using part of the building for their business, or profession.

I was not arguing I was asking if there was a reference and you answered me the question Thanks
I fact IU checked the entire manual the word "commercial" There were 86 times an no reference to the land.

 

[Tom D]

I used the wrong term. You should have seen HUD manual before the new quick search bar. It took me a while to find the appraiser pages in those hundreds of pages manual. I also think that few appraiser have actually read the appraiser's section. You did some depth studying, will always make you more better. Well, i actually got better after 2 HUD letters stating what i did wrong by page and paragraph number. No more mistakes after that terror of getting HUD certified letters.

You post was one of the better ones. You gave us the start and the conclusion, which few rarely do here with a question asked.