Commercial Loans at 90% Financing 

Straight 90% financing for investors is very rare.  6 months to one year ago there were a few lenders that offered 90% financing but there rates where normally 1-3% higher than typical interest rates at 80% financing.  The way the investors still can structure 90% financing on investment properties is to have the seller hold a second lien position loan.  Yes this might be obvious for you, but you should not just assume this is easy to get done. 

Most funding sources out there will not allow any type of second lien loans.  So to find a bank that will allow this shouldn’t just be blown off. Besides just finding a bank will allow seller fining AND finding a seller that is willing to extend financing the property has to fit as well.  In short the property has to be a bit of a “cash cow”. The market for purchase investment properties is set at 75% to 80% financing.  Having the additional 10% to 15% of debt will often put a properties cash flow under water. 

In addition, banks will often raise their minimum Debt Coverage Ratio from say a 1.2 to a 1.3.  And yes they will factor in the debt payments on both their loan and the seller second.  So again the property has to be priced right with a cap rate in the double digits.