HUD 221(d)(4) Non-Recourse

What is a Non-Recourse Loan?

What is a Non-Recourse Loan?

If a loan is non-recourse, a lender can take possession of assets used as collateral to secure the loan. However, unlike a recourse loan, if money is still owed after selling the collateral, with a non-recourse loan, the lender cannot go after the borrower’s other assets or garnish wages. The lender must accept the loss.