Non-Recourse Commercial First Mortgage
While some borrowers are agreeable to a full-recourse loan, many others prefer or need to find a competitive non-recourse program for their purchase or refinancing plans. Our commercial first mortgages have the non-recourse clause that you are looking for and may be well-suited for your current financing needs.
What to Expect From a Non-Recourse Loan
Recourse is a common term in commercial lending, but it also is a term that some have confusion about. Before applying for this type of loan, it is important to understand fully what it means to you. With a non-recourse loan, a default will enable the lender to seize the collateral that is linked to the loan, but the borrower’s other assets will not be impacted. With a full-recourse loan, however, the borrower’s other assets may be sought after by the lender if the property value is not sufficient to pay off the debt that is owed. Our non-recourse program has standard industry carve-out provisions for specific “bad boy” acts.
Our Non-Recourse Loan Programs
At MortgageDepot, we strive to provide our borrowers with highly-competitive loan terms on all programs. With our commercial loan program, we offer financing solutions up to 80 percent loan-to-value for multifamily and mixed-use properties. For hotels, we offer 70 percent LTV, and for other commercial property types, we lend up to 75 percent LTV. Our loans are available nationwide in loan amounts from $3 million to $50 million. These are 30-year fully amortized loans, but shorter term lengths are available in some cases. A minimum 1.25x DSCR is required for qualification. Reserves are calculated for tenant improvements, insurance, taxes, replacement reserves and leasing commissions.
Competitive Interest Rates
With our commercial non-recourse loan programs, our five-year fixed rate is 3.4 percent, and the 10-year fixed rate is 3.9 percent. The interest rate is linked to the applicable swap curve based on an actual/360 basis. When you contact us to learn more about the program, we can provide you with today’s current rates and more pricing information.<
It can be difficult to find the right non-recourse loan program for your needs, but MortgageDepot strives to make this easier for you. We have a quick overall loan process and highly competitive rates and terms on our programs. If you are interested in learning more about our non-recourse commercial programs for the first lien position, contact us today at (800) 535-0270.
Do not hesitate and contact our office for more information about non-recourse commercial mortgages
*This product is not regulated by the New York State Department of Financial Services