Owner willing to finance 20% down?

[Jeff W.]

I have found a commercial property where the owner is willing to finance 20%. My question, as I am unfamiliar with commercial properties, is whether a bank will accept this, or will they require the money down to be directly from me?

Just to be clear, I'm trying to get the bank to finance 80% and the owner the other 20% (or 75% and 25%).

[Jon Holdman]

Nope, the bank won't allow this. The term CLTV applies in this case - combined loan to value. The value is the purchase price (or appraisal, if that's lower). A bank might be willing to do a 75% or 80% LTV. But the will impose a limit on the CLTV. Not sure what it will be, but it won't be 100%. You will have to have some of your own cash in the deal.