Net worth must be equal to loan amount?

[Chris Pochari]

Hi guys I'm new here but I've been puzzled over this question for a while. If commercial mortgages require that the investor have a net worth equal to or greater than the loan amount than isn't the idea of a 30% downpayment ridiculous? the real downpayment would really be 100%? Say someone had a $120,000 to invest, most real estate gurus would say that you could obtain a 400,000 mortgage right? Well not really because if the bank requires your net worth to be equal to the loan amount than you could only borrow $120,000.