HUD 232 Non-Recourse

Are HUD 232 Loans Non-Recourse?

Are HUD 232 Loans Non-Recourse?

If a loan is non-recourse, it means that a lender cannot go after a borrower's personal assets if they default on the loan. Instead, they can only attempt to repossess the loan collateral-- which, in multifamily real estate loans, is typically a piece of property. Fortunately for borrowers, HUD 232 loans are fully non-recourse, which means that their personal property is usually safe-- even if they face a significant financial setback that leads them to default on the loan for their skilled nursing, assisted living, or memory care facility.