100% finance

Can you get 100% financing on a 14 unit w pos cashflow.
Everyone is telling me 90%.
I thought they financed based on the cashflow of the prop.
Anyone write in VA that can do 100%?

There are creative ways to get 100% financing but if you are talking about get a 100% financing from a lender without any type of colatoral, then no. They like to see that you have some skin in the game. Plus leveraging 100% doesn’t work on most properties, Make sure your numbers are correct before persueing 100%. Also the higher LTV typically translates into higher interest rates which will eat up CF.


Thanks Jordon,
I have the 10%. Haven’t done commercial loans before so I was wondering.
I’m not fond of lucking up capital like that.
If I purchase and go for a refi in a year will they refi based on the rent roll?
I thought that was how it worked. As you can see I’m a rookie in the commercial


Sure, rent roll is one of the components they will use to underwrite the deal. They will look closely at the Profit and Loss Statements, Income and Expense Statements, Balance Sheet etc. Then they will get the property appraised. The appraised value will determine your LTV and what you can refinance. Possibly you could get some cash out to move onto your next deal. If this is your objective make sure your intial loan does not have a lock out period. You won’t be able to refi until this period is up. Some commercial loans have a lock out periods and a prepayment penalty. Just make sure you choose the right product based on your investment stategy.


Generally speaking, you would be capped at 97% (if it were a owner occupied) and 90% (for non-owner occupied) unless you use cross collateralization by way of bridge/mezzanine financing to go higher.


Scott Miller

How about

70% LTV 1st
20% LTV 2nd from seller
and 10% cash?

thanks everyone.
Best I have been able to come up with is 90% 1st and 5% seller second, 5% down.
Not crazy tying up even 5 % but I’m guessing thats the play.
I’m getting rates of 11%.

Is that right. seems outrageous to me

for 90% 1st? No… i would charge that much if I were the bank too. But then again, what’s your FICO score?

No, you need to look elsewhere. 11% is way too high. Do you have bad credit or something? 11% is close to hard money lender rates. In the past couple of months I have been getting the following quotes:

Conduit loans(CMBS)

85% LTV 100 basis points over the t-bill (about 5.6%)
90% LTV with a mezz peice 150 bases points over t-bill(about 6.1%)

HUD loan:
92.5% CLTV - 85% 1st at 6% combined with 7.5% seller second.


11% sounds like a 90 LTV Stated program…


Scott Miller

Jordan, is this for specific types of properties? Does it require owner occupancy?

The best I’ve been quoted (for multi-fam, retail, and office) was 7.5… (a couple of months ago). Am I being misled?

There are several factors that lenders use to determine the rate:

  1. NOI
  2. DSCR
  3. Loan amount
  4. Strength of borrower (credit & net worth)

Also, you will want to find a lender that specializes in the property type that you are looking for (small multifamily lender). These types of lenders will be able to give you the best rate.


Some of the better rates available are HUD/FHA rates but those programs don’t work well for small loans because of all the fees attached to the loan programs.

Here is a good commercial lender with great loan programs for 5 units and up apartment buildings (95% financing, sub-prime rates, etc)

Oops, here is the link. If you contact him, tell em Newby101 on reiclub.com sent you!