Loan to Value
Commercial investment properties are viewed more conservatively
as compare to residential lending, Most lenders will require a
minimum of 20% of the purchase price to be paid by the buyer.
The remaining 80% can be in the form of a mortgage provided by
either bank or mortgage company. What a bank/lender will do is
subject to their appetite and the quality of the buyer and the
property. Loan to value is the percentage calculation of the
loan amount divided by purchase price.
Businesses less than three years old, a personal
credit of principals will be evaluated. For corporations,
business performance and credit ratings will be evaluated with a
proven track record.