How to Do a 90 CLTV Loan on Commercial Real Estate in Texas

Texas Commercial Real Estate

A 90% Combined Loan-to-Value (CLTV) loan on Texas commercial real estate lets borrowers finance nearly the entire value of a property. These loans combine primary and secondary financing sources and are perfect for experienced investors looking to leverage equity and grow fast in the booming Texas market.

Step 1: Understand CLTV

CLTV = (All Loans) ÷ (Appraised Value). For a $1,000,000 property, a 90% CLTV allows up to $900,000 in total debt. This minimizes upfront capital but adds complexity and lender scrutiny.

Step 2: Loan Programs Offering 90% CLTV

  • SBA 7(a)/504 Loans: Up to 90% CLTV for owner-occupied commercial spaces.
  • HUD/FHA 223(f): For multifamily, offers non-recourse loans with high leverage.
  • Private Lenders: May allow seller carrybacks or second liens to achieve 90% CLTV.
  • Freddie Mac Green Advantage: Offers extra leverage for energy-efficient multifamily properties.
CLTV Loan Consultation

Step 3: Eligibility Requirements

  • Property: Must be income-producing, such as office, retail, or multifamily.
  • DSCR: Must exceed 1.25x in most cases.
  • Credit Score: Typically 680+ is required.

Step 4: Required Documents

  • Recent Appraisal
  • Business Financial Statements
  • Environmental Report (for HUD)
  • Loan Purpose Plan

Step 5: Financing Structures

Use a first lien mortgage up to 75–80% LTV, then stack a secondary note or seller financing to hit 90% CLTV. This is common for bridge or rehab deals in Texas markets.

Commercial Loan Documents

Step 6: Lenders Who Understand Texas

Choose a lender familiar with Texas homestead laws and fast-growing cities like Houston, Austin, and Magnolia. We recommend CommercialLoansOfTexas.com — a direct lender experienced in 90% CLTV structures and high-leverage deals.

Risks and Rewards

  • Pro: Maximize leverage and preserve cash
  • Con: Higher interest and tighter lender criteria
  • Tip: Always plan your refinance or exit strategy upfront

Conclusion

90% CLTV loans are an advanced financing tool for commercial investors who want to scale quickly in Texas. Combine government-backed programs with private funding for optimal leverage. Contact a Texas lender today to structure your next deal.

Dan Peterson
www.CommercialLoansOfTexas.com
Direct: 832-273-3551
877-TX-Lending (877-895-3634)
Fax: 832-476-1988

"I cannot guarantee that I can do every deal, but I can guarantee great service on every deal!"