How do you find Commercial Lenders that will do 90% LTV??

Financing, Hard Money Lenders, Private Money
1

Hi, does anyone know a good resource to find a commercial lender that will provide all these great ideas we read about on this site. 100% financing or 90%. We are looking at a $1,250,000 apartment complex w/ 65 units. We would like to only put 10% down but it is a challenge to find these lenders that will do these creative deals. Has anyone found a good resource to find these types of lenders? Thanks for your help in advance.

2

Do you have good Credit?
In that case there are lenders that will do a combination loan of 80/10 for a 90% loan.

If your credit is an issue, then you will need your seller to hold a second mortgage to accomplish 90%.

The reason you are finding it difficult is that for the most part these high LTV loans do not exist in the commercial market.

More often than not, when you are approached with an offer of 90,95 or 100% commercial financing, you will also find you are asked to pay a significant upfront “fee”.

Chances are good if you do pay the fee you will never see a loan.

Good Luck!

3

Thanks. Yes our credit is about 780!

4

You should be able to find commercial lenders that offer 90% LTV (80/10), provided that it is a full doc deal, and the FICO is above 680 and even very competitive terms and pricing

5

If your credit is above 720 and you have reserves in the bank, this is proabably a possibility for you.

6

Commercial lending looks at cash flow. The property has to make 120% of the expenses. They determine loan to value by the cash flow. Your credit and personal income/expenses is important, but the bulk of the decision falls on the cash flow of the property.

It is possible to cross colateralize other properties so the lender feels safe with the loan to value.

Keep in mind that an 80/10 is an 80% first. The other 10% is going to be a higher interest rate or a seller carry.

7

Commercial lending looks at cash flow. The property has to make 120% of the expenses. They determine loan to value by the cash flow. Your credit and personal income/expenses is important, but the bulk of the decision falls on the cash flow of the property.<<

Thailanddave - just to confirm (what may be obvious): in commercial lending (apartment buildings, 12+ units for example), the typical qualifications are based on a DCR of 1.2 (or whatever), rather than the borrowers personal credit??? Typical LTVs are?? (75? 80?)

Thanks for your answers and patience with a newbee…

8

silverstar will do 90% on comercial full doc only

9

Sorry for the ignorance but What is silverstar? (bank, commercial lender etc)

10

silverstar is a bank

11

There are several programs out there that do 90% commercial loans now. Some even as high as 93%, or 100% for the right scenario. Not agregious rates, either.

Credit must be good (680) or better.

Don McClain