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Commercial

Non-Recourse Loan

Definition

A loan secured only by the collateral, with no personal liability for the borrower beyond the property.

Example

Agency multifamily debt is typically non-recourse subject to standard carve-outs for fraud and waste.

Frequently asked questions

What does Non-Recourse Loan mean in real estate?

A loan secured only by the collateral, with no personal liability for the borrower beyond the property.

How is Non-Recourse Loan used in practice?

Agency multifamily debt is typically non-recourse subject to standard carve-outs for fraud and waste.

This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.