Mixed-use property
A home can include business use and still be conventional collateral—but the residential character must remain dominant.
Primarily residential
The property must remain primarily residential in nature. The appraiser and lender evaluate whether the non-residential use is legal, typical or marketable for the area and does not impair residential use or value.
Examples need case-by-case review
Home offices, small studios, salons, professional offices or other business areas may be acceptable in the right market, while a property dominated by commercial use may not be eligible.
Official guide baseline
Fannie Mae Selling Guide · Freddie Mac Seller/Servicer Guide
Property eligibility, valuation method, appraisal findings, AUS messages and lender overlays all matter. The appraisal supports collateral eligibility; it does not replace underwriting.