What is nonrecourse loan?
A loan whose claim is limited to the property and borrower entity: the lender cannot generally pursue the sponsor’s personal assets, except under bad-boy carve-outs for fraud, misapplication of funds, and other specified acts.
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.