100% Financing

So, I talked with a mortgage broker and he told me that I easily qualified for a loan. It will not be a problem. After discussing how much, he said easily 90% and maybe 95%.

I asked him about the idea of having the owner finance the other 5%, but he said banks really like to see that other portion come from my own bank account. He also said that banks will not approve my 90-95% loan if the owner has the other 5%.

How can I get around this?

I asked about pushing up the paper purchase price to show that I have a portion of the down, as suggested to me by two people, but the mortgage broker said that will not work.

There are several lenders that loan up to 90 LTV and with a seller second, it is possible to get to 95 CLTV (75% Lender 1st + 20% Seller 2nd).

If this will be an owner occupied commercial transaction, there is a possibility to go as high 97 LTV.

There are two possibly ways to secure 100% financing for commercial transactions—one of which is applying for a unsecured LOC…

All this said, do you even know if you will debt service at 90 LTV? Have you seen the rates yet (90 LTV loans are on the expensive side—in the 9s and higher).


Scott Miller

Your broker should have also mentioned that this is illegal.

100% CLTV products do not exist with mortgage brokers anymore. The broker you talked to is right, you can get 90-95% no problem if you have the credit, which it sounds like you do. You’re local bank will allow 100% CLTV almost certainly. Make sure and talk to the commercial guys though, not residential. Residential bankers will probably go up to 97% FHA backed loan. But the commercial guys will go up to 100% CLTV, usually 80/20. The rates are pretty low right now, primes is 7.25% and will most likely be in the 6’s come last week in January when the Fed meets again. I guess the only drawback is that they only do 20 yr. notes, but if you’re going to do 100% financing you have to build that into your cash flow projections and your offers that you make. Good luck.


With all due respect, there is no such thing as a 80/20 commercial loan.


Scott Miller