Mixed use Fannie Mae

[Pattyflower]

It wo

. But what you don't know is that old world as a complex has more components of residential than commercial because 9 units were approved by the Haoaa and city to have residential components in the first floor (converting the commercial part) units #1.#2.#5, #20 #28,#30 #31#32,#33,#42b,Reducing the commercial component. Also there is one unit that is completely residential unit ( unit #2 )...

The zoning allows for more use of the residential .

 

[nstanbru]

The zoning allows for more use of the residential .View attachment 55401

That still doesn't change the configuration of your unit. It's still about 50% commercial and 50% residential. If you want to appraise it, not including the commercial portion, with no permits on record for changes from commercial to residential (to meet the 25% threshold) and use the 1004 for the report, knock yourself out. I'm just suggesting you use some caution here, it's your license on the line.

 

[Pattyflower]

That still doesn't change the configuration of your unit. It's still about 50% commercial and 50% residential. If you want to appraise it, not including the commercial portion, with no permits on record for changes from commercial to residential (to meet the 25% threshold) and use the 1004 for the report, knock yourself out. I'm just suggesting you use some caution here, it's your license on the line.

It is in the process of being converted , I just want to make sure I have the things ready

 

[sputnam]

It sounds to me like you've accepted an assignment that you aren't competent to complete. Pay an experienced local appraser to help you.

 

[DWiley]

If you decide to do this on a 1004/70, pay attention to Cert 11. Have you appraised a similar property in this area before? If one has not done that, one cannot truthfully sign the 1004/70.

Cert Item 11...

11. I have knowledge and experience in appraising this type of property in this market area.

 

[glenn walker]

YOu seem

It is in the process of being converted , I just want to make sure I have the things ready

You have done your research-So just do the appraisal and be done OR get a Huntington Beach Appraiser there are many in Huntington Beach and adjacent Beach Communities. A Forum is not going to get it appraised only you or the lender can do that. So get moving

 

[Pattyflower]

It sounds to me like you've accepted an assignment that you aren't competent to complete. Pay an experienced local appraser to help y

If you decide to do this on a 1004/70, pay attention to Cert 11. Have you appraised a similar property in this area before? If one has not done that, one cannot truthfully sign the 1004/70.

Cert Item 11...

11. I have knowledge and experience in appraising this type of property in this market are

Would you be so kind to contact me with an appraiser who has appraised a similar property in this area before? Someone who has experience and can sign the 1004/70?..
That is the reason I started this post , ( go check and read from the beginning) not for me to appraise ,but to find the one who can .... perhaps people are assuming more than reading what I asked .

 

[Mike Kennedy]

What would you consider most convenient if you have this property and you want to refinance for a better loan with Fannie Mae and you are not an appraiser. Where would you find a good ethical appraiser who would do this appraisal for residential mixed use. ( Not for commercial just out of greed )

1. selling-guide.fanniemae.com › Selling-GuideWhat are the requirements for a mixed-use property?​

   
   Aug 04, 2021 · The following special eligibility criteria must be met: The property must be a one-unit dwelling that the borrower occupies as a principal residence. The borrower must be both the owner and the operator of the business. The property must be primarily residential in nature.

2. selling-guide.fanniemae.com › Selling-GuideB4-1.4-07, Mixed-Use Property Appraisal ... - Fannie Mae Selling​

   
   Aug 04, 2021 · Fannie Mae purchases or securitizes mortgage loans secured by properties that have a business use in addition to their residential use provided that special eligibility criteria are met. These business uses can include, but are not limited to, properties with space set aside for day care facilities, beauty or barber shops, or doctor’s offices.

3. selling-guide.fanniemae.com › UnderwritingHow is commercial or mixed-use space in a ... - Fannie Mae​

   
   Aug 04, 2021 · 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. This includes commercial space that is above and below grade. Note that projects located in flood zones with commercial space greater than 25% of the project’s square footage, including any commercial parking facilities, may need supplemental or private flood insurance policies to meet Fannie Mae’s requirements for ...

4. selling-guide.fanniemae.com › Selling-GuideB2-3-04, Special Property Eligibility ... - Fannie Mae​

   
   Aug 04, 2021 · The following special eligibility criteria must be met: The property must be a one-unit dwelling that the borrower occupies as a principal residence. The borrower must be both the owner and the operator of the business. The property must be primarily residential in nature.

5. mfguide.fanniemae.com › node › 3196Zoning and Legal Non-Conforming Uses | Fannie Mae Multifamily ...​

   
   Requirements. For each Property Property Multifamily residential property securing the Mortgage Loan and including the land (or Leasehold interest in land), Improvements, and personal property (as defined in the Uniform Commercial Code). , you must: Identify the current zoning or land use designation.

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[Tom D]

It is in the process of being converted , I just want to make sure I have the things ready

some of you must not be familiar with converting residential to commercial, or commercial to residential. most cities have the same type zoning codes. if they got permits, and you better check that, then the property is going to lose it's commercial usage, because they now got new permit to change the unit zoning to residential. i know, it may not show up in 'public' records. our big city, it don't show up ever. but once changed to residential use, they would have to get it rezoned back to commercial usage if they wanted that again. this is based on actually getting the permits to change it to residential usage. so your residential appraisal is subject to having the 'city permits' to make it a residential unit.
if no permit was gotten, then the zoning is still commercial, being used as residential.
how many big city corner properties are now residential, or multi family, when they were first built to have neighborhood stores. mostly all of them, and the zoning is now residential, not mixed use.
yes, people can play any games they want with their properties. but that is why you have to see the l&i permits as to what they are doing to it, and what l&i is calling it now.

 

[Pattyflower]

some of you must not be familiar with converting residential to commercial, or commercial to residential. most cities have the same type zoning codes. if they got permits, and you better check that, then the property is going to lose it's commercial usage, because they now got new permit to change the unit zoning to residential. i know, it may not show up in 'public' records. our big city, it don't show up ever. but once changed to residential use, they would have to get it rezoned back to commercial usage if they wanted that again. this is based on actually getting the permits to change it to residential usage. so your residential appraisal is subject to having the 'city permits' to make it a residential unit.
if no permit was gotten, then the zoning is still commercial, being used as residential.
how many big city corner properties are now residential, or multi family, when they were first built to have neighborhood stores. mostly all of them, and the zoning is now residential, not mixed use.
yes, people can play any games they want with their properties. but that is why you have to see the l&i permits as to what they are doing to it, and what l&i is calling it now.

I already did that I investigated the zoning and the possibility to have more residential in the first floor is real. ( Behind the store front) I am in the process already and I am looking for all the important information and details so when the time comes the process won't delay ( appraisal etc etc )