Yes, FHA can finance some mixed-use properties.
A storefront, office or other commercial component does not automatically disqualify a property from FHA financing. The property must remain primarily residential and satisfy FHA's current property requirements.
Primarily residential
FHA appraisal guidance has described eligible one-to-four-unit mixed-use properties as requiring at least 51% of the entire building square footage to be residential, with commercial use that does not adversely affect the health and safety of residential occupants.
Marketability and use
The appraiser/lender must analyze the actual property configuration and commercial use. A modest office or neighborhood storefront is a different risk from a property whose dominant economic use is commercial.
Local zoning
Legal use, zoning and any nonconforming-use issues still matter. FHA eligibility does not override state/local land-use law.
Source standard
Mortgage Navigator uses HUD/FHA Handbook 4000.1 and current HUD program materials as its policy baseline. Current Handbook update: August 12, 2026. Draft policy is not treated as effective policy.