Ok, I have seen props for lets say 450k-650k. All multi units. I have qualified for 100% financing. Now, some of those props say, 25% or whatever as a down payment. My question is, those types of props, is it that they dont want to wait for some cash, or is it, that my loan to them for the prop is not delivered in whole, right away. I now i sound green, thats because I am(olol)but I thought, if i have a loan for 450k, and use that to get the prop, that the seller will get the whole 450k. How does this work, because i have found good deals, but I need to clarify things for myself before i waste anyones time. Thanks in advance.
You are correct in that the seller gets all the money from your loan at closing.
You said you qualified for 100% financing, make sure that is for multi-units (only up to 4, any more is a commercial deal), and up to that amount. (Much different than a $100k owner occupied home)
If they are advertising 25% down in the listing, its probably one of two things:
1-The seller is offering to finance you, with 25% cash down. Then you pay the seller just like you would a bank for the mortgage. (Look for “Seller financing” or “OWC” or “Owner will carry note” in the listing). This may be easier to qualify for, if you can get the 25%.
2-Its is a just description for a loan program that the realtor knows of that you can use to get the property. (But you don’t have to use that program).
Just my 2c. Good luck!
Thanks, now, can I get 100% financing on a commercial property of lets say in the price range of 580k? And is mixed use also considered commercial>? Because I am looking at way more profitable properties at mixed use at around the same price as a 4 family.
There is no 100% financing on commercial properties, unless the owner is willing to finance 20 - 30% of the sale price.
4EEM is right. Commercial lenders DO NOT do 100% LTV. They will in some cases, depending on the scenario, do 100% CLTV.
I’m a broker in the Seattle area, just starting to get into some commercial financing. In my short experience, the highest amount of financing I’ve seen available is 90%.
Can anyone point me in the direction of a lender(s) who offer 100% CLTV financing?
Thanks in advance!
Mark. Who does 100% CLTV?
They must be way off the radar. :o
Do you have other properties you can cross-collateralize? And do you have good credit? If your answer is yes to these 2 questions it is possible for a 100% Commercial.
why will lenders not do 100% on commercial properties?
Most of all the risk is higher.
Joleen is right. Keep in mind that there are just as many con-artists and criminals out there as there are creative investors and sometimes the line between the two is blured. Lenders always have this in mind. :-[