Ineligible Property Types

At Merchants, we strive to offer flexible and comprehensive financing solutions for a wide range of real estate investments. However, there are certain property types that do not qualify for our lending programs due to their inherent risks, regulatory issues, or other factors. Understanding these ineligible property types helps streamline the application process and ensures that potential borrowers can focus on viable investment opportunities.
Owner-Occupied Residences

Properties intended for the borrower’s personal residence do not qualify. Our lending programs are designed exclusively for investment purposes, targeting non-owner-occupied properties.
Agricultural and Farm Properties

Land and properties used primarily for agricultural purposes, including farms, ranches, and equestrian facilities, are not eligible for Merchant financing due to the unique risks and valuation challenges associated with agricultural land.
Raw Land

Unimproved land without existing structures typically does not qualify for loans. Our focus is on properties that generate income or have immediate potential for improvement and development.
Mobile Homes and Manufactured Housing

Mobile homes, manufactured housing, and other types of temporary or movable dwellings are not eligible due to their depreciation rates.
Properties with Environmental Hazards

Properties with known environmental issues, such as contamination, hazardous materials, or significant pollution, are excluded from our lending programs. These issues pose substantial risks and potential legal liabilities.
Special Purpose Properties

Certain properties designed for specific uses, such as churches, schools, amusement parks, assisted living and sports facilities, are not eligible. These special purpose properties often have limited marketability and unique valuation challenges.
Properties in Severe Disrepair

While we do finance fix and flip projects, properties that are in such poor condition that they pose safety hazards or require complete demolition are typically ineligible. The costs and risks associated with these properties exceed acceptable levels for loans.
Properties in Remote or Unmarketable Locations

Properties located in extremely remote or economically distressed areas where market demand is minimal or non-existent are not eligible. Successful real estate investments require viable markets for resale or rental income.
Co-ops and Certain Condominiums

Cooperative housing (co-ops) and some condominiums with restrictive association rules or high delinquency rates among owners may be ineligible due to the additional complexities and risks involved in these types of properties.
Not sure if your property is eligible? Contact us!