Non-recourse loan with a mixed use property as collateral

2 Replies

My husband and I own a duplex outright in Tacoma, the duplex has a third non-conforming unit in the basement. And the property is zoned as RCX, mixed use. We would like to convert the existing detached garage into another 2 units - due to the mixed use zoning, we were told we can't just convert the garage to 1 unit, it must be 2. So now we need a loan to close the gap on the budget. We're estimating it will cost just under $200k to convert the garage and add 1 more unit. We have about 70k we can use from our Solo, but we need a non-recourse loan to finance the other about $120k. Does this seem feasible? Any ideas of any financial institutions that do this kind of loan for this kind of property?

@Iris Hernandez

Normally, non-recourse loans have a minimum of $1mm (Fannie and Freddie). Yes there are some other lenders that do non-recourse loans however they are usually shorter term bridge loans but still have a $500k-$1mm minimum.