What is Recourse?

Recourse in Relation to FHA 232 Financing

If a loan is recourse and the borrower defaults (fails to repay a loan), the lender can seize both the collateral used in securing the loan and the borrower’s assets which are not used as collateral. Fortunately for borrowers, HUD 232 loans are non-recourse for borrowers, with standard bad boy carve-outs (exceptions for fraud and other bad behavior).

To learn more about FHA 232 loans, fill out the form below to speak to a HUD/FHA loan expert.