These condo units are Fannie Mae eligible for financing as long as the commercial space is 20% or less. Programs include Jumbo Mortgages, both fixed and adjustable, conventional and FHA along with many other guidelines has a 25% ratio. Ineligible properties include those who are operated or managed as hotel, offer registration services/offer rentals on a day to day basis, have the name hotel or motel, limit the owners ability to occupy the property.
The actual language in Fannie Mae guidelines “The lender must determine that nonresidential space does not exceed 20% of the project’s total square footage”