Does FHA accept properties zoned for commercial or mixed use?

Mixed Use refers to a Property suitable for a combination of uses including any of the following: commercial, residential, retail, office or parking space.  Mixed Use one- to four-unit Single Family Properties are eligible for FHA insurance, provided:

  • a minimum of 51 percent of the entire building square footage is for residential use; and
  • the commercial use will not affect the health and safety of the occupants of the residential Property.  

 For additional information see Handbook 4000.1 II.A.1.b.iv(A)(5) and II.D.13 at

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-04275