The FHA’s Commercial Loan Programs: An Introductory Guide

Apr 18, 2024

3-minute read

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Modern residential buildings possible available for sale or rent.

As you consider purchasing a commercial property, you may wonder about your lending options. Perhaps you don’t want to go the conventional loan route and you’re considering alternative loan options instead.

The Federal Housing Administration (FHA) backs loans under the jurisdiction of the Department of Housing and Urban Development (HUD). This means that the FHA protects your lender against loss if you stop making your mortgage payments.

Can you buy a commercial property with an FHA loan? In some cases, yes, depending on the property itself, how it’s used and if the owner lives there. In this article, we’ll dive deeper into when FHA commercial loans are permitted and discuss some of the FHA’s commercial loan requirements. It’s important to note that although Rocket Mortgage® does offer FHA loans, we do not offer loans for commercial property.

What Is An FHA Commercial Property Loan?

The Federal Housing Administration (FHA) insures mortgages for a wide variety of commercial projects aimed at encouraging the creation of housing for low-income, elderly and disabled people. Some loans are available to both for-profit and nonp