A non recourse loan mortgage entitles the lender to repayment only from the equity of the property in the event of non-payment and foreclosure. This type of financing typically requires more substantial collateral, a lower loan to value, and generally has a high interest rate. A non recourse home loan is often considered the best option for real estate investors as it limits the financial exposure of the borrower. This type of financing is eligible both on a long term amortization loan and a short-term fix and flip or bridge loan with a 1-2 year term.
Red Rock Capital offers the highest loan to value for a non recourse mortgage loan that’s available in the market. Whether you want to finance a smaller home or a larger multifamily property, you can expect straightforward advice and service from Red Rock Capital. There is little need to visit other non recourse mortgage lenders after discussing your needs with Red Rock Capital. This is because we offer both short-term and long term non recourse mortgage loans. This has incredible benefits particularly for Self-Directed IRA’s and solo 401K borrowers that come to us for financing.
Understanding The Non Recourse Mortgage
A non recourse mortgage is a form of commercial lending characterized by higher risk to a lende. Non recourse lenders such as Red Rock Capital are able to mitigate the risk on these types of loans by requiring a lower loan to value, higher property equity requirements, and post-closing liquidity as part of our loan guidelines.
When is Non Recourse Financing Often Used?
Non recourse financing carries a higher interest rate but it provides less risk to the borrower as no deficiency can be collected from them in the event of a loan default. Red Rock Capital non recourse home loan is the best product for real estate investors, especially those with self-directed retirement accounts that must obtain non recourse financing to comply with the IRS requirements.
Who Qualifies For Non Recourse Financing?
Leading non recourse mortgage lenders have different requirements for financing these types of loans. Red Rock Capital is different from others because of its flexible requirements. We see every real estate investor as a valued client and want to provide a detailed loan proposal that meets the needs of the borrower. If anyone comes to us with a project, we try our best to find a loan program that works for what you are seeking to accomplish. We have a non recourse mortgage loan for every investment property need and work collaboratively with our clients to help them achieve their financial goals.
The Bottom Line
A non recourse loan mortgage offers several benefits to real estate investors looking for financing options and reduced liability exposure. Red Rock Capital specializes in working with self-directed IRA and self-directed 401K clients obtain and purchase real estate using it’s non recourse loan programs. As one of the leading non recourse mortgage lenders, Red Rock Capital is always advising clients on what loan programs can be suit their investment objectives.