Mixed-Use DSCR Loans for Real Estate Investors

What Is a Mixed-Use Property and Why Is It Hard to Finance?

A mixed-use property combines commercial and residential use under one roof. The classic example: a ground-floor retail store or restaurant, with one or more residential apartments on the upper floors. These properties are popular in urban infill markets, main street corridors, and downtown areas — and they often generate exceptional total income because you're collecting rent from multiple tenants across multiple uses.

The financing problem is structural. Conventional residential lenders (Fannie/Freddie) won't touch a property with a commercial component. Traditional commercial lenders will, but their loans typically have 5-10 year balloon payments, higher rates, and no interest-only options — terms that don't suit a buy-and-hold investor. The asset falls between the cracks.

Our mixed-use DSCR program bridges that gap. We underwrite on the combined income from both the commercial and residential portions, using the same DSCR framework as a single-family rental loan — and we offer 30-year fixed terms so there's no balloon to worry about.

Loan Parameters

Who This Loan Is For

• Urban infill investors — Acquiring main street or downtown mixed-use buildings where the commercial plus residential combination generates strong yields.
• Business owner-operators — Running your business out of the ground floor while collecting residential rent above — the DSCR is based on the full income of the building.
• Long-hold value investors — Mixed-use properties in dense markets appreciate differently than residential — 30-year fixed terms mean you can hold as long as you want.
• Investors blocked by conventional limits — Already maxed out on Fannie/Freddie properties, or too complex for traditional commercial underwriting — DSCR mixed-use fills the gap.

Frequently Asked Questions