What LTV ratio do commercial lenders typically require?

Commercial lenders typically require a loan-to-value (LTV) ratio between 65% and 80%, depending on property type and loan program. Stabilized, income-producing properties like multifamily apartments may qualify for up to 80% LTV through agency lenders (Fannie Mae, Freddie Mac). Office, retail, and industrial properties often max out at 70–75% LTV through conventional commercial lenders. Properties in transition, special-use properties, or those with occupancy issues may be limited to 60–65% LTV. SBA 504 loans allow up to 90% financing. The required down payment (20–35%) is typically funded by the borrower's equity or other approved sources.