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?
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:
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.
@RJ King you wont find any lenders that will supply a non-recourse loan on such a small property. In order to attract non-recourse financing the loan balance must be at least $1M. These loans are usually doable with Fannie Mae and Freddie Mac. There are CMBS lenders out there as well that have non-recourse products as well. Your best bet is to get with a local community savings and loans bank who specialize in multifamily.
@RJ King you wont find any lenders that will supply a non-recourse loan on such a small property. In order to attract non-recourse financing the loan balance must be at least $1M. These loans are usually doable with Fannie Mae and Freddie Mac. There are CMBS lenders out there as well that have non-recourse products as well. Your best bet is to get with a local community savings and loans bank who specialize in multifamily.
True for normal non-recourse loan, not true for what RJ was asking about, which is non-recourse loan for a property he is buying inside of his retirement account. Read the discussion above.
@Dmitriy Fomichenko thanks for catching that for me. I didn't catch that. But now I see. I honestly can't say that I'm an expert in the arena. Not sure how that works out.