Yea, to give you 100% financing the lender will want a lot more collaterol than 25%, your likely to give them much more than the cash value you intend to borrow as the difference between your conventional borrowing say 75% and the additional 25% making up 100% financing.
A lender normally loans some percentage of (LTV) Loan to Value because they are managing their risk, in some real good markets in our country you may still be able to get 80% while in poor area's of our country you may only be able to get 60 or 65% LTV.
The spread is there to control risk, if you want say 100% in an area that maximum LTV is 70% then you are likely to have to put not only the property your buying but an additional 45% of that loans value, theoretically the ratio is based on risk and the lender needs to know their margin is sufficient should they have to foreclose to cover expenses, interest and sales / closing cost’s.
You only want to cross colateralize a loan if your buying so cheap that even a fire sale tomorrow you would still make a profit, and the ratio of what’s frozen won’t inhibit you having the ability to take advantage of other opportunities.
Think of cross collaterolization as “Risk Capital” Can you afford to lose it if things go south???
100% financing is one of the best kept investor secrets.Using someone else’s money allows you to use your money in other ways while benefiting from the appreciating investment you are still apart of despite your not contributing initial capital.