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Financing Options Scholarships

Finance your studies

Financing Options Scholarships

Our track records show that a master degree from HHL will provide you with exceptional career opportunities that will make your financial investment well worthwhile. However, we are aware of the fact that pursuing a master program at HHL requires serious commitment and thorough financial planning. To help making your study at HHL possible, we offer different options to finance your tuition fee and living costs.

HHL offers scholarships for outstanding candidates interested in studying in one of our M.Sc. programs.

Full-time M.Sc. - Scholarship for Effective and Responsible Leadership

HHL is offering two scholarships that support HHL's mission to educate effective and responsible business leaders through excellence in teaching, research and practice.

The scholarship in the value of up to EUR 10,000 Euro covers part of the tuition fees of HHL's full-time M.Sc. Program.

About the Scholarship

The scholarship will provide the successful applicants with a tuition waiver for the M.Sc. Program worth up to EUR 10,000. Social responsibility, effective leadership, and dedication describe the track record of the grantee. In return, the grantee will support HHL's mission.

Scholarship Selection Process

The selection committee evaluates the applications and afterwards decides which candidates will be awarded with the Scholarship for Effective and Responsible Leadership. The final decision will be communicated after the last Admission Test Day of the current intake.

Requirements and Deadlines

Applicants must hold or be in the process of obtaining a first degree in business (at least 180 ECTS credits) with an above average result. Furthermore a GMAT score of at least 650 is required. Only applicants who apply for HHL's full-time M.Sc. Program for the March or the September intake are eligible to apply for this scholarship.

Applicants are required to submit all application documents by January 15 (Intake March) or June 20 (Intake September).

  • A completed full-time M.Sc. application (http://study.hhl.de)
  • GMAT score of at least 650
  • Scholarship essay (see below) incl. statement of authorship
  • Scholarship questionnaire

Please submit your scholarship application via e-mail to: daniel.ritchie(at)hhl.de

Every business leader faces inevitably ethical dilemmas. Choose one which you perceive as particularly relevant, describe it, and explain how an effective, responsible and entrepreneurial leader should cope with it.

Student Recruitment M.Sc.

T +49 341 9851-619

Full-time M.Sc. - Young Leader Scholarship

About the Scholarship

Scholarship Selection Process

Please submit the scholarship application via email to [email protected], parallel to your program application. The selection committee evaluates the application and in case of a successful admission to the full-time M.Sc. program, you will be informed about the scholarship decision immediately.

Applicants must hold or be in the process of obtaining a first degree in business or equivalent (at least 180 ECTS credits) with an above average result. Furthermore, a high GMAT score (min. 600) is required. Only applicants who apply for HHL’s full-time M.Sc. Program are eligible to apply for this scholarship.

Please submit your scholarship application via e-mail to: daniel.ritchie(at)hhl.de

The scholarship application deadlines correspond to the program application deadlines, as follows:

Please bear in mind that your chances to receive financial support increase the earlier you apply.

Please submit your answers to the following questions (Questionnaire) along with the other application documents. Please limit your response to 100 words per question maximum.

Student Recruitment M.Sc.

T +49 341 9851-619

Full-time M.Sc. - Global Diversity Scholarship

About the Scholarship

Our ideal applicant will present strong motivation and outstanding professional and academic credentials as well as willingness to become an active member of the HHL community.

Scholarship Selection Process

Please submit the scholarship application via email to [email protected], parallel to your program application. The selection committee evaluates the application and in case of a successful admission to the full-time M.Sc. program, you will be informed about the scholarship decision immediately.

Applicants must hold or be in the process of obtaining a first degree in business or equivalent (at least 180 ECTS credits) with an above average result. Furthermore, a high GMAT score (min. 600) is required. Only applicants who apply for HHL’s full-time M.Sc. Program are eligible to apply for this scholarship.

Please submit your scholarship application via e-mail to: daniel.ritchie(at)hhl.de

The scholarship application deadlines correspond to the program application deadlines, as follows:

Please bear in mind that your chances to receive financial support increase the earlier you apply.

Please submit your answers to the following questions (Questionnaire) along with the other application documents. Please limit your response to 100 words per question maximum.

Student Recruitment M.Sc.

T +49 341 9851-619

Full-time M.Sc. - Scholarship for Women in Business

About the Scholarship

Scholarship Selection Process

Please submit the scholarship application via email to [email protected], parallel to your program application. The selection committee evaluates the application and in case of a successful admission to the full-time M.Sc. program, you will be informed about the scholarship decision immediately.

Applicants must hold or be in the process of obtaining a first degree in business or equivalent (at least 180 ECTS credits) with an above average result. Furthermore, a high GMAT score (min. 600) is required. Only female applicants who apply for HHL’s full-time M.Sc. Program are eligible to apply for this scholarship.

Please submit your scholarship application via e-mail to: daniel.ritchie(at)hhl.de

The scholarship application deadlines correspond to the program application deadlines, as follows:

Please bear in mind that your chances to receive financial support increase the earlier you apply.

Please submit your answers to the following questions (Questionnaire) along with the other application documents. Please limit your response to 100 words per question maximum.

Student Recruitment M.Sc.

T +49 341 9851-619

Full-time M.Sc. - Scholarship of the Kofi Annan Fellowship

About the Scholarship

Apart from the admission requirements for the full-time MSc program, a combination of excellent academic achievements, work experience and involvement in extracurricular activities will increase the candidate's chances of receiving the scholarship.

The Kofi Annan Business School Foundation application questionnaire as shown below is an integral part of the plenary application documents. Candidates are welcome to submit complete application for full-time MSc program along with scholarship questionnaire via http://study.hhl.de. Candidates with successful admission to the HHL full-time MSc program shall be informed of scholarship decision shortly.

Please submit your scholarship application via e-mail to: daniel.ritchie(at)hhl.de

The scholarship application deadline corresponds to the respective program application deadline. Due to limited allotment of the KABSF scholarship, we strongly encourage eligible candidates to submit the application at their earliest convenience.

Student Recruitment M.Sc.

T +49 341 9851-619

Part-time M.Sc. - Young Leader Scholarship

About the Scholarship

Scholarship Selection Process

Applicants must hold or be in the process of obtaining a first degree in business or equivalent (at least 180 ECTS credits) with an above average result. Furthermore, a very good result in the HHL Entry Test or a high GMAT score is required.

Only applicants who apply for HHL’s part-time M.Sc. Program are eligible to apply for this scholarship.

  • A completed part-time M.Sc. application (online at http://study.hhl.de)
  • HHL Entry Test report / GMAT score report
  • Scholarship questionnaire

Please submit your scholarship application via e-mail to Julia Günther.

The scholarship application deadlines correspond to the program application deadlines (June 20).

Please bear in mind that your chances to receive financial support increase the earlier you apply.

Student Recruitment M.Sc.

T +49 341 9851-613

Part-time M.Sc. - Scholarship for Women in Business

About the Scholarship

Applicants must hold or be in the process of obtaining a first degree in business or equivalent (at least 180 ECTS credits) with an above average result. Furthermore, a very good result in the HHL Entry Test or a high GMAT score is required.

Only female applicants who apply for HHL’s part-time M.Sc. Program are eligible to apply for this scholarship.

Other relevant documents such as academic awards and recognitions, special achievements etc. are strongly encouraged.

Please submit your scholarship application via e-mail to Julia Günther.

The scholarship application deadlines correspond to the program application deadlines (June 20).

Please bear in mind that your chances to receive financial support increase the earlier you apply.

Student Recruitment M.Sc.

T +49 341 9851-613

Rooms to go financing options

HHL offers scholarships for outstanding candidates interested in studying in one of our MBA programs.

Full-time MBA - Young Leader Scholarship

With its Young Leader Scholarship Program HHL offers scholarships that support its mission to educate effective and responsible business leaders through excellence in teaching, research and practice”.

About the Scholarship

The scholarship will provide the successful candidates with a partial tuition fee reduction.

Student Recruitment Manager

T +49 341 9851-889

Full-time MBA - Future Entrepreneur Scholarship

With over 165 start-ups established by our alumni over the past 17 years, HHL has also developed into an incubator for company creation. HHL develops the entrepreneurial spirit of its students through a theory-practice approach in teaching and learning and supports its students actively in the realization of their business ideas with its Future Entrepreneur Scholarship Program.

The scholarship will provide the successful candidates with a partial tuition fee reduction.

T +49 341 9851-889

Full-time MBA - Women in Business Scholarship

With its Women in Business Scholarship Program HHL offers scholarships to support talented women in future leadership positions.

About the Scholarship

The scholarship will provide the successful candidates with a partial tuition fee reduction.

Apart from the admission requirements for the full-time MBA program, a combination of excellent academic achievements, work experience and involvement in extracurricular activities will increase the candidate's chances of receiving a scholarship.

Student Recruitment Manager

T +49 341 9851-889

Full-time MBA - Scholarship of the Kofi Annan Fellowship

About the Scholarship

Apart from the admission requirements for the full-time MBA program, a combination of excellent academic achievements, work experience and involvement in extracurricular activities will increase the candidate's chances of receiving the scholarship.

The Kofi Annan Business School Foundation application questionnaire as shown below is an integral part of the plenary application documents. Candidates are welcome to submit complete application for full-time MBA or MSc program along with scholarship questionnaire via http://study.hhl.de. Candidates with successful admission to the HHL full-time MBA program shall be informed of scholarship decision shortly.

The scholarship application deadlines correspond to the program application deadlines.

Student Recruitment Manager

T +49 341 9851-889

Full-time MBA - HHL Eastern Europe Scholarship Program

With its HHL Eastern Europe Scholarship Program, HHL offers scholarships to support talented candidates from the Eastern European region in order to foster the geographical diversity of the MBA class.

With its HHL Eastern Europe Scholarship Program, we support excellent candidates from Eastern European countries applying to HHL’s full-time MBA program. Candidates of all academic and professional backgrounds are welcome to apply. Our ideal applicant will present strong motivation and outstanding professional and academic credentials as well as willingness to become an active member of the HHL community.

The scholarship will provide the successful candidates with a partial tuition fee reduction.

Student Recruitment Manager

T +49 341 9851-889

Full-time MBA - HHL Latin America Scholarship Program

With its HHL Latin America Scholarship Program, HHL offers scholarships to support talented candidates from the Latin American region in order to foster the geographical diversity of the MBA class.

With its HHL Latin America Scholarship Program, we support excellent candidates from Latin American countries applying to HHL’s full-time MBA program. Candidates of all academic and professional backgrounds are welcome to apply. Our ideal applicant will present strong motivation and outstanding professional and academic credentials as well as willingness to become an active member of the HHL community.

The scholarship will provide the successful candidates with a partial tuition fee reduction.

Student Recruitment Manager

T +49 341 9851-889

Full-time MBA - HHL Asia-Pacific Scholarship Program

With its HHL Asia-Pacific Scholarship Program, HHL offers scholarships to support talented candidates from the Asian-Pacific region in order to foster the geographical diversity of the MBA class.

With its HHL Asia-Pacific Scholarship Program, we support excellent candidates from Asia-Pacific countries applying to HHL’s full-time MBA program. Candidates of all academic and professional backgrounds are welcome to apply. Our ideal applicant will present strong motivation and outstanding professional and academic credentials as well as willingness to become an active member of the HHL community.

The scholarship will provide the successful candidates with a partial tuition fee reduction.

Student Recruitment Manager

T +49 341 9851-889

Full-time MBA - HHL Africa Scholarship Program

With its HHL Africa Scholarship Program, HHL offers scholarships to support talented candidates from African countries in order to foster the geographical diversity of the MBA class.

With its HHL Africa Scholarship Program, we support excellent candidates from African countries applying to HHL’s full-time MBA program. Candidates of all academic and professional backgrounds are welcome to apply. Our ideal applicant will present strong motivation and outstanding professional and academic credentials as well as willingness to become an active member of the HHL community.

The scholarship will provide the successful candidates with a partial tuition fee reduction.

Student Recruitment Manager

T +49 341 9851-889

Full-time MBA - HHL Middle East Scholarship Program

With its HHL Middle East Scholarship Program, HHL offers scholarships to support talented candidates from the Middle-East region in order to foster the geographical diversity of the MBA class.

With its HHL Middle East Scholarship Program, we support excellent candidates from the Middle-Eastern countries applying to HHL’s full-time MBA program. Candidates of all academic and professional backgrounds are welcome to apply. Our ideal applicant will present strong motivation and outstanding professional and academic credentials as well as willingness to become an active member of the HHL community.

The scholarship will provide the successful candidates with a partial tuition fee reduction.

Student Recruitment Manager

T +49 341 9851-889

Part-time MBA - Young Leader Scholarship

With its Young Leader Scholarship Program HHL offers scholarships that support its mission to educate effective and responsible business leaders through excellence in teaching, research and practice”.

With the Young Leader Scholarship Program, HHL offers scholarships that support HHL’s mission to “educate effective and responsible business leaders through excellence in teaching, research and practice”. The scholarship also aims to contribute to the fostering of future national leaders in Europe and other countries.

The Young Leader Scholarship Program focuses on prospective students, who bring their leadership potential to HHL. The scholarship is also offered to outstanding e-fellows alumni.

The scholarship application deadline is end of November for the intake in March.

Please bear in mind that your chances to receive financial support increase the earlier you apply.

Student Recruitment Manager

T +49 341 9851-730

Part-time MBA - Scholarship for Women in Business

With its Scholarship for Women in Business, HHL would like to support excellent female candidates of all academic and national backgrounds who present strong motivation and outstanding professional and academic credentials and who are willing to become active members of the HHL community.

About the Scholarship

Successful candidates will receive the first half of the scholarship by the start of the MBA program and will need to maintain an overall grade average of at least 2,0 in their studies at HHL to be entitled to the second installment.

Other relevant documents such as academic awards and recognitions, special achievements etc. are strongly encouraged.

Senior Manager Student Recruitment

Part-time MBA Programs

T +49 341 9851-730

Part-time MBA - Global Diversity Scholarship

With its HHL Global Diversity Scholarship HHL offers two scholarships for outstanding part-time MBA candidates with an international background. The scholarship will support our goal of comprising a highly international part-time MBA class.

About the Scholarship

Requirements and Deadline

  • A completed MBA application form (http://study.hhl.de)
  • GMAT score of at least 600 (or in exceptional cases a very good result in the HHL Admission Test)
  • Scholarship essay
  • Scholarship questionnaire
  • Proof of financial needs

Senior Manager Student Recruitment

Part-time MBA Programs

T +49 341 9851-730

Global Executive MBA – Woman in Leadership Scholarship

About the Scholarship

Requirements and Deadline

The essay has to be written in English.

  • A completed MBA application form (http://study.hhl.de)
  • High GMAT score (or alternatively a very good result in the EADA-HHL Admission Test)
  • Scholarship essay

Senior Manager Student Recruitment

Part-time MBA Programs

T +49 341 9851-730

Global Executive MBA – Entrepreneurs Scholarship

About the Scholarship

Requirements and Deadline

The essay has to be written in English.

  • A completed MBA application form (http://study.hhl.de)
  • High GMAT score (or alternatively a very good result in the EADA-HHL Admission Test)
  • Scholarship essay

Senior Manager Student Recruitment

Part-time MBA Programs

T +49 341 9851-730

Global Executive MBA – International Diversity Scholarship

About the Scholarship

Requirements and Deadline

The essay has to be written in English.

  • A completed MBA application form (http://study.hhl.de)
  • High GMAT score (or alternatively a very good result in the EADA-HHL Admission Test)
  • Scholarship essay

Senior Manager Student Recruitment

Part-time MBA Programs

T +49 341 9851-730

Global Executive MBA – Not-for-profit-sector Scholarships

About the Scholarship

Requirements and Deadline

The essay has to be written in English.

  • A completed MBA application form (http://study.hhl.de)
  • High GMAT score (or alternatively a very good result in the EADA-HHL Admission Test)
  • Scholarship essay

Senior Manager Student Recruitment

Part-time MBA Programs

T +49 341 9851-730

Global Executive MBA – Small and Medium Enterprises Scholarships

This scholarship supports our goal of achieving an outstanding and truly international Executive MBA class. The Small and Medium enterprises scholarship targets business leaders working in a small or medium enterprise which supports personal and professional growth among employees. The scholarship will provide the successful candidates with a tuition waiver of up to 25% of the total tuition costs for the Global Executive MBA Program.

Requirements and Deadline

  • A completed MBA application form (http://study.hhl.de)
  • High GMAT score (or alternatively a very good result in the EADA-HHL Admission Test)
  • Scholarship questionnaire

Senior Manager Student Recruitment

Part-time MBA Programs

T +49 341 9851-730

Global Executive MBA – Financing support for EADA and HHL Alumni

EADA and HHL will give a special contribution to alumni who would like to continue growing professionally undertaking the Global Executive MBA program.

Senior Manager Student Recruitment

Part-time MBA Programs

T +49 341 9851-730

Rooms to go financing options

Would you like to concentrate on your research only and attend HHL’s doctoral program without working? Then you may apply for a scholarship to cover the tuition fees (and/or living expenses).

If you are interested in a research project on ethics, supervised by Prof. Dr. Andreas Suchanek, you might be interested in the scholarships of the Wittenberg Center for Global Ethics (WCGE) which are offered annually. Please check the web pages of the institutions for the respective calls for scholarship application and deadlines.

There are plenty of scholarship options from other foundations for German and for international students. The following list gives you starting points for your scholarship search:

WCGE Scholarships “Ethics and Responsible Leadership in Business

As a result of the generous support on behalf of the Karl Schlecht Foundation, a doctoral program was established in cooperation between the Wittenberg Centre for Global Ethics (WCGE) and the Leadership Excellence Institute Zeppelin (LEIZ) in Spring 2014. The program also includes a societal dialogue platform whereby the expertise of leading business ethicists, the experience of multi-national corporations and the individual perspectives of various different societal actors and organisations are brought together in the form of various different events and publications. The HHL is one of the associated academic institutions and is represented by Prof. Dr. Andreas Suchanek as one of the supervising professors. The program is open to outstanding doctoral students whose research interests address the field of responsible leadership in business in a global context. The goal is that students not only gain a qualification in their specific area of research but also, that they understand the broader theoretical and sociopolitical framework of their research activities.

Six Doctoral scholarships are offered annually to gifted students. The scholarship finances the students’ cost of living for the duration of the three year program. The associated study program includes 6 mandatory courses, 2 electives and 2 field projects via which the students test their theoretical knowledge and ideas in a practical context. Current students’ research topics span several aspects of economic and business ethics such as Behavioural Business Ethics, whereby insights from behavioural research and psychology are applied to business ethics issues, and Human Rights Due Diligence, which involves investigating how companies can guarantee that no human rights violations occur throughout their entire supply chain.

Since 2013, the Friede Springer Foundation has continuously promoted excellence in research by funding doctoral scholarships for outstanding candidates. Thanks to the generous support, CASiM is currently hosting two excellent members - Anirban Ash and Stefan Anderer who primarily investigate the role trust plays in firms and markets. The first Friede Springer Scholarship holder Dr. Linh Nguyen successfully completed her doctoral studies in 2016.

Rooms to go financing options

CASiM Scholarship Holders Stefan Anderer, Linh Nguyen and Anirban Ash

For the best students, to cover living costs in Germany (foreigners have to show financial resources of EUR 735 per month to obtain a student visa), HHL has established several links to private sponsors, companies and governmental organizations. These close relationships will help students to finance the stay in Germany. In addition, we recommend all foreign applicants for one of our programs to contact relevant national agencies in their respective home country. A lot of foreign governments have own scholarship programs to support a stay of their students abroad.

Rooms to go financing optionsThe scholarship database of the German Academic Exchange Service (DAAD) should be one of your most important sources for your scholarship application. Please visit the website of the German Academic Exchange Service's scholarship database, and choose your country of origin. You must apply for most programs online. The German embassies in your home country will assist you. Please make sure to meet the application deadlines. For most programs, the German government will assist you with EUR 750 per month as a Master student or EUR 1,000 per month as a doctoral student.

About the Scholarship

Rooms to go financing options

750 Euro (Master incl. MBA) or EUR 1,000 (doctoral students) per month for a maximum of 6 months.

Rooms to go financing optionsScholarship holders are expected to support the international department of HHL for 4 hours per week.

Prospective students should apply for the scholarship via regular mail. Current students can submit the application directly to the International Office.

Director International Relations

04109 Leipzig - Germany

National Scholarship Program (Deutschlandstipendium)

About the Scholarship

The annual number of scholarships to be awarded will be published by the Director of Financial Aid of HHL. In 2017, HHL can support 10 students.

The National Scholarship Program started at the beginning of the fall semester 2011 and continues on a semester basis. The scholarship requires a formal application.

Please add to the application form:

Application period is June 1-30 for the Fall term (September) and February 1-28 for the Spring term (April).

The duration of a scholarship is 12 months. The scholarship is renewable on application.

B) Previous special successes, awards and prizes, to be proven by the applicant.

C) Non-university or non-professional commitment such as voluntary work, community, social, university or political involvement.

D) Special personal or family circumstances such as illness and disability, care of own children, especially as a single parent, or close relatives to care, employment in family business, own current employment, family background or migrant background.

Failure to meet the application criterion A) is an exclusion criterion, criteria B) to D) will be considered by the selection committee, provided they are adequately demonstrated by the candidate in German or English. For accompanying documents that are not written in German or English a certified translation must be submitted together with the original version. The applicant will be informed in writing about the scholarship decision.

Exclusion criterion for granting a scholarship is performance-based financial support from a domestic or foreign institution in case it exceeds a monthly average of EUR 30 per semester.

  • last examination
  • withdrawal from his studies
  • expellation

Any violation of this requirement or in the case of determining a non-prolongation of the scholarship after the first semester will result in a revoke of the scholarship to the end of the calendar month, with a notification of a six week period for repayment of unjustified amounts received. In the case of an unjustified double funding, the scholarship will be revoked retroactively with an immediate repayment period.

There is no legal claim to the award of a scholarship as described above.

Prospective students should apply for the scholarship via regular mail. Current students can submit the application directly to the International Office.


What the hell are the financing options for non-traditional homes?

Offbeat Homie Kathryn asked us a question that we can#039;t answer. But maybe you can?

I#039;m wondering if you/your fabulous readership would have any advice about getting financing for nontraditional living spaces. Banks seem to be incredibly reluctant to finance anything other than a traditional home mortgage, but that#039;s not at all what we want!

My husband and I have dreamed for years of purchasing a small building in our adopted city. We#039;ve never been drawn to traditional neighborhoods, and feel like our souls are slowly dying, as we#039;re currently trapped in Suburbia.

We have the perfect neighborhood in mind, and are eying a particular building that we could easily inhabit while doing renovations at the same time. We#039;d convert the top floor into a swinging loft where we#039;d reside, and the bottom level would be studio and manufacturing space for my husband#039;s freelance art business, possibly with a storefront gallery.

Yet, we#039;re having a terrible time finding funding for such a building. We#039;re certainly not rich, but I#039;m established in my career, and could walk into pretty much any bank and get a #034;normal#034; residential mortgage of $150K. But no banks will even talk to me when they learn that we want to purchase a building for our primary residence instead of a house. They immediately want to know how much rental income we#039;ll be bringing in (none #8212; we just want to live in the damn thing!).

We#039;ve considered trying to get a business loan, but organizations like the SBA try to encourage us to rent a space for my husband#039;s business instead of buying a building, so the doors seem to slam shut there as well. No one seems to understand that we just want to live in a nontraditional space!

So many cities make noise about building artist communities and being artist-friendly. Everyone knows artists make neighborhoods nicer! In days past, it was quite normal for people to live above their shops. Why is it so difficult for banks to catch up to current trends, and be willing to fund live-work scenarios? What financing options are out there for people like us who aren#039;t at home in a #034;normal#034; home?

Live/work spaces? Industrial lofts? Or maybe one of those cool fire station homes? Do you live in a home that#039;s not technically a home? Tell us all about your financing options for non-traditional homes!

Rooms to go financing options

I know the Earthship movement has a database called #039;pockets of freedom#039; that lists places where you can get easy permitting and zoning for nontraditional living spaces, but I don#039;t know about financing. Maybe look for some nontraditional architects/realtors in the area where you want to live? They probably have cross-industry connections that could help you.

I also found this:

TL;DR: It suggests seller financing and/or a rehab loan.

Rooms to go financing options

And if you can get one, a rehab loan is probably the right loan anyway, given that you#039;ll almost certainly have to do work to bring it up to housing code.

Rooms to go financing options

Is the building zoned for residence? That could be one barrier to financing#8230;

Rooms to go financing options

Technically, it would have to be zoned for mixed use, if you want both commercial and residential in the same building.

Rooms to go financing options

You#039;re absolutely right that zoning could be a barrier. Fortunately, the area we#039;ve been focusing on is primarily zoned multi-use, and all the buildings we#039;ve looked at have allowed residence as well as retail/light manufacturing. We#039;ve definitely kept an eye on that!

Rooms to go financing options

OP, my best advice would be to talk with an experienced mortgage broker and skip going directly to the banks. If you#039;re dealing with a property that#039;s already zoned for mixed use, you#039;re probably going to have to go with a commercial loan which is pretty different from getting a personal mortgage. If the property is not zoned for mixed use currently, then there#039;s a whole other host of work that needs to be done to have the zoning changed. In other words, I#039;d strongly recommend getting a real estate agent that has experience with commercial properties.

Rooms to go financing options

I agree. An experienced mortgage broker with work in both commercial and residential lending will find the best fit for your situation.

Rooms to go financing options

We had originally thought that a mortgage broker might be the way to go, but haven#039;t had much luck yet. They seem to ask the same questions as the banks (how much rental income will you be making from the property?). It is, however, highly possible we just haven#039;t found the right broker!

Rooms to go financing options

It#039;s been a loooooong time since I was in the real estate area, but I#039;m guessing you#039;ll need a mortgage broker with commercial experience. I do remember mixed use properties were a pain in the butt for people to acquire, but there are generally very few of them on the market, so I#039;m guessing people hang onto them once they get them.

If there#039;s some sort of business association for that neighborhood, you could reach out to them and see if they know a commercial mortgage broker, especially if there#039;s a decent number of mixed use properties in the area.

Rooms to go financing options

Does your husband#039;s business gallery make any money? I#039;m not a lawyer, but it occurs to me that if his business is set up as a formal entity (corp or LLC) as opposed to a sole-proprietorship/informal freelance set up, you (the couple) could rent to his business entity. Contact a lawyer that works in real estate and business entity formation and THEN go to a mortgage broker. (They ask about how much rent you are going to get because it counts towards your income for qualifying for the loan and most people buy a space like that for income to offset their housing costs.)

Rooms to go financing options

Depending on how much of a gap you are trying to bridge there are always personal loans.

Rooms to go financing options

I think it also depends on where you are/live. My place is a live/work townhouse where the first floor is zoned commercial (it was purchased with a traditional home loan). My best advice is to go to a place in your location of choice and find someone who has the setup you want and talk to them. Find out what it took, how long, and who they went through.

Rooms to go financing options

Would peerstreet.com be useful for you?

Rooms to go financing options

Working in business I see the flip side of this much clearer. Zoning laws are in place and extremely important because of safety. Should something go wrong in your shop below, or the commercial buildings on either side of your residence, you could lose not only all of your personal assets, but all of your business assets as well- in one accident. Financial institutions often shy away from these investments because of those risks.

From a business perspective, there are noise, air, parking, and many more restrictions to take into consideration when a residential dwelling pops up in a commercial area. Also, residential buildings mean that people will be around the business after business hours. That could mean added security costs, insurance liability, etc. This is why zoning laws can severely impact real estate prices.

Lastly, while it#039;s sweet that people say artists make areas better- it could easily be argued that using commercial space as residential rules out the possibility of a larger business moving in and employing people. Jobs have a huge impact, if not the largest impact, on communities. Though of course it could be argued that nearly anything moving into a vacant building is better than prolonged vacancy. Just wanted to shed some light on the other perspective as well.

Best of luck in your endeavors and kudos to you for questioning the status quo!

Rooms to go financing options

You might want to look into the FHA 203k loan. It#039;s a loan that allows you to finance the rehab costs into the mortgage, but you have to use certified contractors and vendors, so if you#039;re intent was to fix it up yourselves this may not be the best fit#8230;.

Rooms to go financing options

After reviewing FHA loans for an appraisal management company for several years, I#039;m not sure this is a good idea. 203k loans are notoriously difficult to get even for single family homes. Getting one for converting part of a commercial building would be downright impossible (and it would be impossible to appraise, especially for determining the economic life of the property).

Rooms to go financing options

I don#039;t know about large cities, but where I live, most of the small cities towns in the region have downtown areas with a few buildings for sale with shops below and apartments above. Most of them need a lot of TLC but also have a lot of potential. The banks are familiar with the buildings their multi-use purposes. While the big banks won#039;t do much, I have been told that the bankers at the regional banks credit unions are supportive of the need to shore up these downtown areas, so it can be easier to work with the them. (Unfortunately, interest rates may be higher at the smaller institutions.) Also, real estate and the cost of living in smaller cities is usually much more affordable, lowering the amount of funding needed.

Most cities have economic development offices. There are sometimes loans and grants available for establishing businesses, the purchase /or rehabbing of empty buildings in the areas of town that they are trying to re-develop. If the building is older, you could also check with the local historical society to see what funding may be available to preserve the building. They may not have funding available, but would know of other sources. If the main commercial purpose is for the arts, check with your local arts commission for funding sources. There are also often other community oriented foundations that offer grants for all types of projects.

I second the advice to talk to a lawyer about the business entity. I also recommend talking to an accountant. There may be tax advantages to different types of business formation. While you are at it, ask about the advantages or disadvantages and requirements to establish the business and/or rehab project as a non-profit endeavor. While that may limit your future use/income/personal profits from the property, and create a lot of paperwork, it may open up more funding options.

If you are unable to get the funding for this project, right now, don#039;t give up. You could consider purchasing a small (tiny?) house a small commercial property. You would have separate loans likely need more money down. However, living in a more traditional space for a few years would let you build your equity business. Then when you have a proven track record, you could go to the banks with with equity rental income from those properties, while you take on the dream project. I have known two couples who have gone this route, and while it took longer than they wished, they were very happy with the end results. They diversified their income, created a more stable financial base for themselves, and were still able to follow their dreams.

Best of luck. I hope you will post in the future to let us know how it turns out.

Rooms to go financing options

I forgot to add that some states are offering loans, grants, tax rebates for energy efficiency upgrades as well as sustainability improvements such as solar panels wind turbines. These programs are usually administered through local governments and power companies. You may have to piece together your funding though several sources, but if you do your homework put it all together as a solid business plan, the banks may be more open to the idea. Your local community college or Small Business Development Center (not SBA) may be able to help with this.

Rooms to go financing options

Another concern that a bank (or any other mortgagee) would likely have is that you cannot purchase traditional homeowners insurance for this type of building. If you#039;re doing any type of major renovation, structural or otherwise, this complicates it further and adds to the risk, especially if you don#039;t have licensed contractors doing the work. Requirements will differ by state/province, but just something to keep in mind.

I also agree with using a mortgage broker. They have a wider variety of lenders to choose from. They tend to deal with the banks too, but often have access to different rates. Once you buy, go to an insurance broker instead of directly dealing with an insurance company. Again, we have access to many companies, including specialty markets.

Rooms to go financing options

I#039;d strongly recommend finding an experienced mortgage broker who knows a good bit about alternative lending.

A private mortgage might be an option, but you#039;ll pay higher rates, fees, etc. Your trouble may be just finding someone to take the risk #8211; a mixed-use property can be tricky to get rid of in the unfortunate event that you were to default on the mortgage, which is a big part of why lenders are reluctant to go near them.

Rooms to go financing options

If possible, maybe you could treat this property (on paper) as a small business. I#039;ve seen quite a few greenhouses with a #034;utility#034; room or office built into them that later serves as living space. There are also a lot of Barns and garages with rooms built atop of them.

My property has quite a few large boulders. One of which I am building an earthbag hybrid home just behind. I#039;m using a lot of natural wood for posts and beams as well. Sort of a hobbit like place.

It#039;s a shame there aren#039;t more people looking into super adobe, or earthbag homes, etc.

A town across the lake from me lost about 200 homes in a fire last year. If they were living in a earthbag community, the homes would likely not have been lost.

There is a family on you tube I believe it is under #034;my little homestead#034;. Check that out if you get a chance. Lots of info on a variety of building options #8230;not typical thinking inside the box, and very inventive and creative.

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