What is non-recourse?
A loan in which the lender’s recovery is generally limited to the property, the borrower entity, and pledged collateral: the lender usually cannot pursue the sponsor’s personal assets merely because the property underperforms, absent a carve-out.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.