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Without Recourse: Overview, Example, vs. With Recourse

By Lyle Daly – Updated Apr 3, 2025 at 12:42PM

Key Points

  • Nonrecourse loans limit lender recovery to collateral, safeguarding borrower's other assets if they default.
  • Loans without recourse often have higher interest rates to offset the increased risk to lenders.
  • Availability of nonrecourse loans varies by region and requires higher credit scores and larger down payments.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

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