100% Financing Using Cross Collateral Loan
Has anyone financed a commercial deal using 0-5% down by finding/using a financial institution that took a different property than the one they were buying as collateral for the down payment? If so, what bank/institution did you use? What loan terms (amortization,  interest rate, term, etc)? 

Most importantly, did the bank sit 2nd in line behind a first mortgage in the property used as collateral for the down payment and what LTV did they let you go to on both that property and the one you we’re buying?

EDIT: Please only respond if you understand what a collateralized loan being used for funding a down payment means AND have used an already owned property as collateral for a down payment resulting in a bank 100% financing the one you are buying instead of 75-80% LTV

Please do not post about blanket mortgages. That has nothing to do with what I am asking. I’m trying to avoid doing a cash out refi via a single or blanket mortgage and just use existing equity as pledged collateral in place of a down payment. Banks do this. I’m asking for people who have done this to share their experience. 

Thank you!
[{"id": "fjaydwe", "text": "I think what you are after is a Blanket mortgage my friend", "replies": [{"id": "fjays9z", "text": "No- I\u2019m not. I have and am familiar with having one mortgage across multiple properties.\n\nI\u2019m looking for someone who has used equity in a commercial building as collateral for a down payment for a building they are buying", "replies": [{"id": "fjb2frj", "text": "You can use loan proceeds for anything. Equity for another purchase, pay your salary, buy a boat. The two aren\u2019t related. The \u201cother property\u201d is still subject to the same constraints, but what you use the loan proceeds for doesn\u2019t matter.", "replies": [{"id": "fjb6aed", "text": "Not my question... google collateralized loans for down payment", "replies": [{"id": "fjb85xv", "text": "Okay your question failed to mention that the other property had an existing loan. So you\u2019re hoping to have someone only leverage the equity in your other property towards the purchase of a new one. The only way you can do this is by pledging the equity in your property through either a mezz loan or a pref equity loan. Both of these would likely require an intercreditor agreement between your existing lender and your theoretical new one. There is little to no incentive for your existing lender to do this and it\u2019s likely expressly prohibited in your loan docs. You can ask. But if/when they say no you would likely have to refi your existing loan and get a mezz loan with it. The amount of mezz debt would have to be sufficient for your equity in purchasing the new property. \n\nSide note: googling collateralized loans is not a helpful suggestion. With the exception of an unsecured line of credit every loan has collateral and is therefore collateralized by something. Your question wasn\u2019t framed very clearly.", "replies": [{"id": "fjbvc00", "text": "Go to the original lender for the second loan. As long as the combined loan to value ratio is below their threshold, and if the debt coverage ratio is also good, they should be happy. Additionally, if the current interest rate is higher than when you got the loan, you have some wiggle room.\n\nThere are some creative things you can do here, like a blend-and-extend mortgage that might help keep payments lower (but over an extended amortization period). Talk to your lender and see what the options are.", "replies": [], "depth": 6}], "depth": 5}, {"id": "fjb913k", "text": "Or you can get a 2nd loan from your existing lender...", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "fjb7bsz", "text": "I did what you're talking about, but it enabled me to put 10% down (instead of 20-25% down) not 0-5% like you mention.  It is a bank in Minnesota.  5 year term 5.5% 25 year AMM.  Regular mortgage/note, but under Conveyance clause it just lists both properties.  \n\nOn the separate property, this bank actually has first and second position on it now.  Was possible as I have good relationship with bank and the appraisal of separate property was very high showing huge equity.  I don't recall the LTV.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fjb5kd1", "text": "The lender is going to need some security, so mortgage each property individually or both together on a blanket", "replies": [], "depth": 1}, {"id": "fjbcj1k", "text": "So you have property A and are trying to purchase property B.\n\nYou have a mortgage on A.  You want to take out a loan that is secured by A and B to finance the acquisition of B.\n\nFirst off, your loan documents for mortgage A likely prohibit this.\n\nSecond, you would have both a first and second lien on property A.  This is likely to be expensive financing.\n\n**What you should do.**\n\nGet a lender to finance both properties and pay off your loan on property A.", "replies": [], "depth": 1}, {"id": "fjbkylu", "text": "Another point after struggling to comprehend your command of the English language and this needlessly verbose post... the fact that you\u2019re buying a property, or the % of the down payment on said property is completely irrelevant. Your entire post should have been : \u201cI own a property with a roughly ____% loan on it. Is there a way I can borrow against my equity?\u201d Instead you come across as a prick while strangers are trying to help you.  If you\u2019re not interesting in hearing about blanket mortgages why did you even bring up other properties?", "replies": [], "depth": 1}, {"id": "fjbltnf", "text": "If you are talking about hard money, most need 50% down, excellent credit score. They are in first place sorry. Until you have done several deals they can relax the requirement buy they are always in first place.", "replies": [], "depth": 1}]