Updated over 6 years ago on . Most recent reply
Lenders who do non-recourse loans and 70-75% LTV refinancing?
Greetings BP!
I’m a newbie investor trying to purchase my first multi-unit investment property here in Houston, Texas. It’s a new construction 4-PLEX with 2bed/1ba units...
Purchase price is 300K and I’ll be putting a 25% down payment...
I will be using my Qualified Retirement Plan and would need to find a lender who does non-recourse loans with 70-75% LTV refinancing.
My FICO score is currently an 824. Can anybody advise me on any possible lenders?
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#1 New Member Introductions Contributor
- Solo 401k Expert
- Anaheim Hills, CA
Most non-recourse lender will require 30-40% down plus 10-15% reserves. Over the years I compiled a list of lenders for my clients offering such financing for retirement accounts, check it out, see of one of them can accommodate your needs:
https://www.biggerpockets.com/member-blogs/2810/50272-list-of-non-recourse-lenders-for-self-directged-ira-and-401k
Your credit score would not be of much significance here, since the loan is non-recourse - you personally would not be responsible for the repayment, the underlying asset would be the only security. Therefore the lender will look at the property value and income it produces to determine if they will lend you.