Let us show you how to get 90% LTV on commercial property.
We lend up to 70–75% in 1st position. The seller carries a note for another 15–20% in 2nd position, behind our 1st lien. You bring as little as 10% down. It's called a seller carryback, and it's one of the most powerful ways to buy commercial real estate with less cash.
Example: $2,000,000 purchase. Our 1st mortgage (70%) + seller note in 2nd position (20%) = 90% combined loan-to-value.
How it works, step by step
Write it into your LOI or purchase contract: the seller finances 15–20% of the price with a note secured by a 2nd lien.
We issue terms on the 1st mortgage up to 70–75% LTV. Our no-doc programs price on credit and LTV, with no DSCR or tax returns.
The seller signs a subordination agreement, so their note sits behind our 1st lien. Combined LTV stays at or below 90%.
You bring the down payment plus closing costs. The seller is paid at closing, minus the amount they carry.
Model your capital stack
Illustration only. Senior loan terms, maximum CLTV, subordination and seller note terms are set by the lender and the seller for each deal.
How to structure it with the seller
- Ask for a seller carryback early
Raise it in the LOI, not after inspections. Sellers who own free and clear, or who face a big capital gains bill, are often open to carrying 10–20% of the price.
- Show the seller what's in it for them
A carryback can move the deal at full price, spread the seller's taxable gain over time through an installment sale, and earn them a steady interest return. Let their CPA confirm the tax side.
- Price the seller note below the senior rate
Every point you save on the seller note lowers your blended rate. A 5% seller note behind a 9.5% senior loan pulls the combined cost well under the senior rate.
- Make the seller note interest-only, or defer payments
Interest-only or deferred payments on the 2nd keep your debt service coverage strong so the senior lender can size the 1st mortgage higher.
- Match terms to the senior loan
Set the seller note's maturity at or after the senior loan's term, with no balloon inside it, so you can refinance both together.
- Expect subordination and standstill terms
The senior lender requires the seller note to sit in 2nd position and sign a subordination and standstill agreement. Share the seller note terms with us up front so there are no surprises in underwriting.
- Keep real skin in the game
Even at 90% CLTV, plan on at least 10% cash from you plus closing costs and reserves. On our no-doc programs the 1st lien is priced on credit and LTV, so no rent roll or T12 is needed to qualify.
Send us your scenario
If your next commercial deal needs more room to work, we'll help you structure it the right way.