Mixed-use properties can offer investors something traditional residential properties often cannot: multiple types of income within one real estate asset.
A building may include residential apartments on the upper floors while the ground level contains a restaurant, retail store, office, or other eligible commercial space. For investors, that combination can create additional opportunities, but it can also make traditional financing more difficult.
Tag Lending Group offers a 2–8 Unit Mixed-Use DSCR Financing Program designed specifically for real estate investors purchasing or refinancing qualifying properties that combine residential and commercial space.
What Is a Mixed-Use Property?
A mixed-use property includes both residential and commercial components within the same property.
Common examples may include:
Apartments above retail storefronts
Residential units above restaurants
Office space combined with residential apartments
Small multifamily buildings with ground-floor commercial tenants
Neighborhood mixed-use investment properties
These properties can allow investors to diversify rental income while owning one property.
Program Highlights
Qualified investors may have access to:
Loan amounts from $400,000 to $2,000,000
Minimum 1.10 DSCR
Minimum 700 credit score
Up to 75% LTV on purchases
Up to 65% LTV on cash-out refinances
Commercial space and lease income-limited to 49%
Retail, restaurant, and office use allowed
LLC, corporation, trust, and individual vesting allowed
1-business-day turn times
All financing is subject to program guidelines, underwriting, documentation requirements, property eligibility, and credit approval.
Why DSCR Financing Can Be Valuable for Investors
DSCR stands for Debt Service Coverage Ratio.
Rather than relying solely on a borrower's traditional personal income qualification, DSCR financing evaluates whether the property's rental income can support its debt obligations.
For investors purchasing mixed-use properties, this can provide an alternative financing path when the property itself generates income from multiple tenants or uses.
A qualifying mixed-use property may produce income from:
Residential rents
Retail tenants
Office tenants
Restaurant leases
Other eligible commercial occupants
This structure can make DSCR financing especially relevant for investors focused on income-producing real estate.
Purchase Financing Up to 75% LTV
Investors acquiring qualifying mixed-use properties may be eligible for financing up to 75% loan-to-value on purchases.
That can make the program useful for investors looking to expand into properties that combine residential apartments with commercial space.
Instead of limiting investment strategies to traditional single-family rentals or residential multifamily properties, investors may be able to consider a broader range of real estate opportunities.
Cash-Out Refinancing Up to 65% LTV
Investors who already own qualifying mixed-use properties may also be able to access equity through a cash-out refinance up to 65% LTV.
Depending on the investor's objectives, cash-out proceeds may potentially be used for purposes such as:
Acquiring additional investment properties
Renovating or improving existing properties
Repositioning an investment portfolio
Building liquidity for future opportunities
Eligibility and permitted uses remain subject to applicable lending guidelines.
Commercial Space Can Represent Up to 49%
One of the key features of this program is the ability to finance qualifying properties where commercial space and commercial lease income represent up to 49% of the property.
Eligible commercial uses may include:
Retail | Restaurant | Office
This creates additional flexibility for investors evaluating properties that do not fit traditional residential lending guidelines.
Flexible Vesting Options
The program may also allow ownership through:
LLCs
Corporations
Trusts
Individual ownership
For experienced real estate investors who hold properties through business entities, this can provide additional flexibility when structuring an investment.
Who Is This Program For?
This program is designed primarily for real estate investors purchasing or refinancing 2–8 unit mixed-use investment properties.
It may be particularly useful for investors who:
Want residential and commercial income within one property
Are purchasing small mixed-use buildings
Own mixed-use real estate and want to access equity
Need an alternative to traditional residential financing
Invest through an LLC, corporation, or trust
Want to expand into income-producing mixed-use properties
Mixed-Use Properties Can Create More Investment Opportunities
Mixed-use real estate can provide investors with another way to diversify a portfolio by combining residential demand with commercial tenancy.
The key is finding a financing structure that recognizes how these properties actually operate.
With loan amounts up to $2 million, DSCR qualification, flexible commercial use, and purchase and refinance options, the 2–8 Unit Mixed-Use Financing Program can help qualified investors evaluate opportunities that may fall outside traditional mortgage guidelines.
Have a Mixed-Use Property You're Considering?
Every mixed-use property is different. The number of units, rental income, commercial use, property configuration, DSCR, credit profile, and requested leverage can all affect eligibility.
Ready to Discuss Your Mixed-Use Scenario?
Have a 2–8 unit mixed-use property you’re looking to purchase or refinance? Schedule a meeting with Anthony Angelillo to review the property, financing goals, and available options.
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