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Steven Ceceri

100% Financing for Commercial Properties (a closer look)

Monday, July 7, 2014 - Article by: Steven Ceceri - First Home Bank - Message

100% Financing for Real Estate Acquisitions is not readily available anywhere, unless a lender (usually private) is willing to consider additional collateral as a blanket. Buyers should be realistic in their financing expectations, so using a 80% LTV (less is better) would be advisable. There are loan programs (higher loan limits) that can go to 85% and even 90% for the right property and situation, but for most of the clients in the market, a LTV of 75% should be used for any calculations and projections. It's not always as simple as taking the Appraised Value and multiplying that by the LTV as some lenders use the "lower" of this calculation or their Required Debt Yield! So, even though it may appear that a lender can offer up to 80% LTV, if the property is not financially as strong as it could be (or you hoped), the Final LTV can drop to around 65% or so (on average due to the Debt Yield requirement. I'm happy to answer any questions and be of help with No Upfront Cost or Obligation, so please feel free to send me an offline message any time.

Enjoy the day!

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