Recourse versus non-recourse loans. Everyone wants a Non-Recourse Loan. Which means that the underlying property is the security for the loan and nothing else. There are no personal guarantees, just the property.
So lets take advantage of this and get me a non-recourse loan is the chant I hear everyday.
The truth is there are no more non-recourse loans for construction, and if you are lucky enough to find one for a permanent loan, you better be a PERFECT candidate. Every one of the C's + E must be perfect. Credit, Collateral in the property, Capacity to cover the debt service by at least 20% to 30%, Character , model financial citizen, Contribution, a significant down payment, and Experience. Lenders are looking more and more to the experience of the investor. No longer can their owning one type of investment property carry over for experience in a different type of investment property,
Experience has become the KEY in 2008 for financing. To see if you would qualify for a non-recourse refinancing fill out our No Obligation Professional Loan Analysis.We will get back to you with the results of our analysis immediately.
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