Non-Recourse Loan Lenders

8 Replies

I am looking to finance a property with a Profit Sharing Plan. This is my first non-recourse loan. I contacted North American Savings Bank, and I'm hoping to find other lenders to compare the rates. The NASB rates were a bit higher than expected:

The loan amount is determined by the property condition, cash flow, retirement reserves, and recent property history. We have a minimum $50,000 loan amount and require some reserves to be shown in any retirement account bearing your name. The bank fees for a purchase transaction are 1% of the loan amount (1.5% if it is a cash out that is owned greater than 6 months) plus $695 in processing/underwriting fees.

The interest rates for a non-recourse loan are as follows:

-4.875% for a 5/1 ARM amortized over 20-25 years

-5.375% for a 10/1 ARM amortized over 20-25 years

-5.0% for a 10 year fixed loan that is amortized over a 10 year period

-5.375% for a 15 year fixed loan that is amortized over a 15 year period

-5.75% for a 20 year fixed loan that is amortized over a 20 year period

-Special quotes may be given for multi-family property 3+ units, rural property, and high rise condominium units

those are fabulous terms if you can actually get it done... lenders are very very particular on these loans and most folks get pretty frustrated with them.. its not like conventional were If you qualify they do the deal...

@Michael Evans - the property is a 4-plex.

@Mark Nolan - thanks for the link. I contacted NASB / - and they seem pretty easy to work with.  Jason Zook (loan officer) has been very responsive. 

@Matt Hoyt - the property I am looking at is less than the 500K minimum. Maybe the next one. :)

@Jay Hinrichs - those terms were from NASB. I think I'm going to move forward with the 5/1 ARM @ 4.875% over 20 years.

I ended up with a non-recourse loan with First Western Federal Savings Bank  Took out the loan in Jan 2017 and selling the property next week!  

My loan terms: 50% LTV, 5.5% 10/1 ARM 25 years

Could have gone with 5/1, but who knew I'd be selling in less than 3 years. :) 

Options (in 2017)

Term: 20 years on Fixed rate loan and 25 years on Adjustable rate loans

Rate: 4.25% on 3/1 ARM, 4.875% on 5/1 ARM, 5.5% on 10/1 ARM, or 6.25% Fixed

Fee: 1% origination fee plus $300 processing and $300 underwriting fee

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