Non-Recourse Loan is a loan where the lender's remedy in default is limited to the property collateral — no personal guarantee. Common in commercial multifamily, less common in residential investor lending. Non-recourse comes with lower max LTV (65-70% vs 75-80% recourse), higher rate (+0.25-0.75%), tighter DSCR floor (1.25+), and "bad-boy carve-outs" — fraud, environmental, voluntary bankruptcy trigger personal liability.
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