Although a multifamily non recourse loan is normally used to purchase a multifamily property such as an appartment or condominium complex, this type of loan may also be used to refinance an existing property, to either reduce financing costs, or provide funding for renovations and rehabilitation. A non recourse loan on a multifamily property can be obtained through government financing or through private lenders. Here are some of the most common multifamily loan programs from non recourse lenders:

Non recourse financing for new multifamily construction

This type multifamily financing is available to borrowers who are planning on the construction of a multifamily property. These may include apartments, condominium complexes, or assisted living facilities. Most lenders will allow you to borrow 90% of the cost of construction, for a 40 year amortization or 40 year term. When obtaining this type of non recourse financing it is best for you to check whether there is a maximum loan amount. If the maximum loan amount is not enough to cover the cost of construction, you might want to check out other multifamily lending programs.

Multifamily non recourse loans for property acquisition

If you’re planning to acquire an existing multifamily property and need financing to do so, you can always go for multifamily non-recourse loans for property acquisition. The loan amount may vary although most lenders offer 85% to 90% loan to value financing. This type of non-recourse financing for multifamily acquisition is also assumable, making the property easier to sell during less than favorable circumstances.

Non recourse loan for multifamily refinance

Non-recourse lenders also offer multifamily refinancing to qualified borrowers. These refinancing offers often have a fixed term, and a loan to value percentage of 80 to 90 percent. Since these loans are non recourse, the borrower is not personally liable for the debt. The lender can only go after the multifamily property held as collateral if you are unable to pay off the debt for any reason. Furthermore most of these loans are also assumable, so that selling the multifamily property in the future is easier.

Non recourse loans for multifamily rehabilitation

If you are looking to purchase a multifamily property that necessitates substantial rehabilitation, you may take out a non recourse loan for property rehabilitation. The set-up is similar to that of a loan for multifamily construction; however in this case, you will be financing the rehabilitation on an existing property. Many lenders offer these types of non-recourse mortgage with varying terms, maximum loan amounts, and non recourse interest rates. There are also lenders which offer these loans on negotiable pre-payment terms, so you end up paying less on your monthly amortizations.

Multifamily non recourse loans are not offered merely for the purchase or acquisition of a multifamily property. You may also use them for rehabilitation or substantial refinancing. After making sure that you’ve chosen a reliable lender, you can start reviewing the many multi family recourse loans available for your specific financing needs.