Loan Programs - Non Recourse Loans
Non-recourse loans are loans that do not require the
personal guarantees of the property owners. Such loans are often
securitized after the loan closes. That is, they are sold to investors on
Wall Street either as individual instruments or as part of a pool of
loans. Non-recourse loans can be either fixed rate or adjustable rate
loans. In order to make the resulting securities marketable, the loans
must meet fairly stringent guidelines. The properties and owners involved
must meet quality criteria to be eligible for securitization. Key Points
to Remember about Non-Recourse securitized loans: Non-Recourse to
qualified borrowers, low interest rates, assumable at lender’s discretion,
available for investment grade properties, and minimum 12-month property
history usually required.
