Quick question on commercial loan

[Oleg Shalumov]

Hello fellow Pocketiers, I have a quick question related to commercial loan.

Normally bank would ask 30% down-payment on loan. My question is if the seller willing to provide the financing on 40% of the selling price, and I only need to take the loan for 60% from the bank. Would bank still require me to provide the 25-30% on the transaction?

Just to plug in the numbers:

Let's say the property is $1M, and seller financing $400K. I would need the load from the bank for $600K. 

Will I need to put down $300K downpayment, or since LTV is .6, bank will not be asking for it?

Thanks!

[Andrew Johnson]

Oleg Shalumov You'll have to ask a few banks. I haven't come across a bank which will let with zero skin in the game. But I do run into the occasional forum post where (if memory serves) someone says they did. Then again we (readers) don't know if they have $500K in deposits with the lending bank, if it's the 15th deal with that bank, etc. Local and regional banks all of their own loan committees to terms are different, history matters, relationships matter, so it's different than an originator that will turn around the sell the paper.