Is it possible to purchase a Bed & Breakfast HOME STAY with an FHA loan? This would be our primary residence.?
Nov 16, 2009
in
Commercial Mortgage FAQ
This is an existing Bed & Breakfast home stay (NOT an inn). It is NOT zoned commercial. The previous owners used it as their primary residence and we would too. There are a total of 5extra bedrooms that we would provide transient lodging from. I’ve gotten differing answers from various lenders. We have been approved for an FHA loan. Since this IS our primary residence, can we Proceed?
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3 comments
Quicken Loans on November 16, 2009 at 4:45 am
I would definitely not recommend trying to get a loan without disclosing this information. You may end up being accused of mortgage fraud. The other comments are correct, FHA doesn’t offer small business type loans. Quicken Loans as well doesn’t have this type of program, however you may be able to do some searching and find another government program that may help you out. Good luck
Janet P on November 16, 2009 at 4:45 am
No, you can’t run a business in the property. Living at the business site isn’t good enough.
patrick on November 16, 2009 at 4:45 am
The home may be purchased as a private home with a FHA loan, but you can not operate a business from the property.
That means that if the bank finds out you are running a business, the loan can be called immediately.