Multi Use Complexes Require a Commercial Property Loan

When you have a building that houses both a residential use and a commercial use at the same time, then by definition you have a multi use property and the relevant financing would be a commercial property loan.

These loans tend to range in leverage from 50% to as high as 75% with the average being 65%.  Lower leverage is typical of more rural buildings with weaker resale markets whereas higher loan leverage is more common in larger centers where there is a greater likelihood of property resale by the lender in the event that the borrower were to default on the mortgage terms.