Mixed-use properties can create unique opportunities for real estate investors by combining residential units with commercial space in a single property. However, financing these properties can sometimes be more complicated than financing a traditional residential investment property.

Tag Lending Group offers 2–8 Unit Mixed-Use Financing designed for investors purchasing or refinancing properties that combine residential units with eligible commercial uses such as retail, restaurant, and office space.

What Is a Mixed-Use Property?

A mixed-use property combines more than one type of real estate use within the same building or property. A common example is a building with residential apartments on the upper floors and retail, restaurant, or office space on the ground floor.

These properties can provide investors with multiple potential sources of rental income while allowing them to diversify the use of a single asset.

2–8 Unit Mixed-Use Program Highlights

Eligible investors may have access to financing with:

• 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

Program eligibility and final terms are subject to underwriting guidelines and approval.

Why DSCR Financing Can Work for Mixed-Use Investors

Debt Service Coverage Ratio, or DSCR, financing focuses on the property's ability to generate sufficient income relative to its debt obligation.

For real estate investors, this can provide another way to evaluate an investment property without relying exclusively on traditional owner-occupied mortgage qualification methods.

For qualifying mixed-use properties, this approach can be particularly useful when the property generates income from both residential and commercial tenants.

Purchase Mixed-Use Investment Properties

Investors looking to acquire a qualifying 2–8 unit property may be eligible for financing up to 75% LTV.

This may create opportunities for investors considering properties such as:

• Apartment units above retail storefronts
• Residential units combined with office space
• Residential buildings with restaurants at street level
• Small mixed-use multifamily properties
• Neighborhood commercial buildings with residential units

Cash-Out Refinance Opportunities

Existing mixed-use property owners may also be able to access equity through a cash-out refinance up to 65% LTV, subject to program requirements.

Depending on the investor's objectives, accessing equity may provide capital for additional real estate investments, property improvements, or other investment-related purposes.

Commercial Space Flexibility

Under this program, commercial square footage and commercial lease income can represent up to 49% of the property.

Eligible commercial uses may include:

Retail | Restaurant | Office

This provides investors with additional flexibility when evaluating properties that do not fit neatly into a traditional residential-only lending category.

Who Is This Program For?

This financing option is designed for real estate investors purchasing or refinancing 2–8 unit mixed-use properties that combine residential units with qualifying commercial space.

It may be especially useful for investors looking to acquire properties with multiple income streams or expand into mixed-use real estate.

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