Non-Recourse Loan Lenders

[Amy Greger]

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

[Amy Greger]

I ended up with a non-recourse loan with First Western Federal Savings Bank www.myiralender.com.  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