© Fannie Mae Single Family Selling Guide

Overview

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. For eligibility criteria, see B2-3-04, Special Property Eligibility Considerations.

Appraisal Requirements for Mixed-Use Properties

The appraisal requirements for mixed-use properties must

provide a detailed description of the mixed-use characteristics of the subject property;
indicate that the mixed use of the property is a legal, permissible use of the property under the local zoning requirements;
report any adverse impact on marketability and market resistance to the commercial use of the property; and
report the market value of the property based on the residential characteristics, rather than of the business use or any special business-use modifications that were made.

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