Does 100% financing for commercial properties really exist?

[Mark Fulop]

Yes and No. It depends.

100% funding only is possible in a few different situations.

      For instance, If you are a Doctor and you are leasing a location and now want to now buy instead of lease. Normally you would need 10% down but if you are running a medical practice  it is now possible to buy with no money down. Must have at least a 650 fico . Must Occupy at least 51% or more of the space. Normally people buy commercial condo's that they have been leasing in this manner. The loan would require no money but you still need 6 months cash reserves to show you can pay mortgage. In addition 8-10k for closings costs.

There is also another way to attain 100% funding. But you have to already be running the place yo are buying as the manager.

Lets say you are the manager of a business and commercial building.

I will use a funeral home as an example.

If you are running a funeral home for at least a year and are a licensed funeral director.

It would be possible to buy the funeral home you currently run and manage from the current owner with no money down. Must have at least a 650 fico and 2 years tax returns available. 

How is this possible? Normally you would need 10% down plus 6 months cash reserves to buy a pre existing business and commercial building.  In most cases you also need a few years experience in that industry.

If the seller agrees to hold back 10% down payment as a seller second it would enable

you to attain funding for the other 90 ltv. In addition renovation, equipment, line of credit, will be put into the mortgage. Must occupy at least 51% of the space. Need 6 months cash reserves to show you can pay mortgage. In addition 8-10k for closings costs.

This is not an advertisement I am just explaining that 100% funding only exists in certain scenario's.

Thanks

Mark Fulop