100% commericial loan


I have a client who wants a 100% commericial loan on an apartment and he wants the seller to hold a second on the property. Are there any lenders who do these types of loan.

                                                            GD Piggott

Typically you will not see 100% financing in this type of property. You may see a lot of folks claiming to do it, but they will ask for UW commitment money and you willnever see the deal closed.

Depending upon the size of the loan there are options to go up to 85%-90% on a first mortgage. If the loan is smaller (ie- less than $1 mil) there are private investors that will off er 75-80% first mortgages and allow a 2nd mortgage to 90%+.

In all these cases the borrower will need some money in the process, and should have some basic experience in running these types of properties. The numbers on the property itself are very important; the occupancy rate, etc.

Hope this helps some.


W. Jeff Weatherspoon

Agree with JW.

Lots of “fluff” and very little “stuff” in these types of “deals”…Be wary when someone asks you for “due diligence” money, too. It is ok when you’re at the stage of getting the property appraised and for EPA report requirements and for the cost of sending someone to look at the deal.

Have heard enough stories of the $10,000.00 to $100,000.00 ripoffs. Why the people don’t contact the US attorney or a local district/states attorney is beyond me.

If you don’t have some SKIN in any kind of deal, tough to do.

Those of us in the business get a lot of flak from people who say that they’ve found all of this 100% commercial money…but…when you talk with them, there are credit enhancements; cross collateral; and, seller financing involved in virtually all of them…and, surprisingly, they also come up with some money!

Ask yourself this question: If there was 100% commercial money available so easily, why wouldn’t EVERYONE IN THE WORLD GO TO THAT SOURCE? I would buy everything in the world if I didn’t have to have any money of my own in the deal!

Be realistic, have some “skin” in the deal; and, you have a chance to get some money.


I agree with John 100%.

Why would anyone put up money when you won’t put up your own. Residential properties are one thing. With commerical properties it is difficult to get your money out if you do that large of a LTV.

Put up your own money, if you don’t want to come up with extra cash, use the equity in your home, get a HELOC.

If the property truly does have a great NOI, then you shouldn’t be afraid to put your own money into it. Besides you will get a terrific rate if you do and the savings in the payments you can see a higher monthly cash flow and get that money back quickly.

As a nationwide commercial lender, I try to be straight forward and honest. 100% commercial financing is a true myth.