Non-recourse Loans

Are HUD 223(f) Loans Non-Recourse?

Are HUD 223(f) Loans Non-Recourse?

If you're an investor looking to purchase or refinance a multifamily property, it's essential to understand the status of a loan's recourse provision before making any important financial decisions. If a loan is full-recourse, it means that if a borrower fails to pay back the loan, the lender can go after a borrower's personal assets in order to compensate for their losses. In comparison, non-recourse loans, like the HUD 223(f) loan, only permit the lender to repossess the property itself in the case of a borrower default.