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.
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.
- The dwelling may not be modified in a manner that has an adverse impact on its marketability as a residential property.
See B4-1.4-07, Mixed-Use Property Appraisal Requirements, for appraisal considerations.
For additional information, see B2-3-04, Special Property Eligibility Considerations.