What is minimum down these days for commercial?

[Shari Posey]

Here are a couple basic questions to finance an owner-occupied 14-unit apartment complex priced at $3m...
What is the min. down payment required?
Is there such a thing as "stated-income" for a commercial loan?
(Seller financing is not an option.)

[Bill Gulley]

The capacity to pay the loan is at the top of the list of requirements, but it's not going to be a loan program with verifications of a borrower's income and qualify.

Let's assume the property passes the collateral requirements.

There is an old saying that you can get a loan if you can prove you don't need it, in other words there just isn't any way the repayment would not be made, few will meet that test.

As to LTV, it is generally 20% or 25% down, at that amount many lenders may want 30% down, that might be had with a combined loan to value meaning a seller could carry back 15% (20%), buyer has 10% down and finance 75% (70%). Other arrangements might be made, pledging other assets, that could put you at 100%. A lender may allow an assumption of an existing loan keeping the original borrower on the note.

Much of your down payment required will hinge on the buyer's abilities, credit, capacity, management experience, assets and the property will be assessed as to value, condition, location, market and collateral issues.

Commercial loans are on a case by case basis, not at all like secondary market residential lending.