100% financing

Since many commercial lenders require anywhere from 70-80% LTV, will lenders allow 100% financing of the purchase price if a property is purchased at 70-80% of market value?

If so, is this type of financing difficult to obtain?

Local banks may finance based off of appraised value. National lenders will not lend based on appraised value. They will will use the aquisition cost as the value.

There is a loan product from the hard money genre that allows for the type of financing you reference.

I call it HPV or highest possible value lending.

Conventional lenders fund based on the lower of either the sales price or appraised value; this loan program funds on the higher of the two values (which in most cases is the appraised value).

As a secondary layer of risk aversion, the investor typically orders a BPO (broker’s price opinion) and will ultimately lend on the lower of two numbers; the BPO or the appraisal.

Typical LTV’s are between 65 to 70 of Appraisal/BPO and typically offered for residential property only.


Scott Miller

Hey Scott,

Have you checked your PM’s? I sent you a message sometime ago…