You might ask why you should care if the mortgages on your investment properties are Recourse or Non-Recourse. Aren’t all loans 100% recourse or at least a partial recourse? 

The answer is NO as all the HUD, Fannie Mae, and Freddie Mac loans that Howell Investment Finance close are 100% non-recourse.

What is the Difference? Why should you care?

Recourse loan is secured by a pledge of the collateral plus personal assets of the borrower. If the borrower defaults, the lender can seize and sell the collateral plus additional assets of the borrower, even their home, savings, and vehicles. Thus, a recourse loan places the borrower's personal assets at risk.

Non-recourse loan is secured by a pledge of the collateral, period and the borrower is not personally liable. If the borrower should default, the lender can seize and sell only the collateral, and if the collateral sells for less than the debt, the lender cannot seek that deficiency balance from the borrower. Thus protecting the borrower’s personal assets.

Why is it Important to choose the Right Loan?

Choosing the right loan for your investment property will ensure that your life is safeguarded from the fluctuations of your investment business. 

How Choosing the Right Lender Makes a Difference.

Be sure to choose the right lender for your investment. Not only will they review your options, but they’ll also help you to find the best loan and terms. They will counsel you on the types of loans you qualify for, as well as what that means to your investment and how to protect your assets. 

Whether you’re taking out a loan for your first investment property or you’ve been in the business for years, keeping up to date on the latest lending policies can easily affect your baseline. Howell Investment Finance has been providing Iowa investors from Ames, Des Moines to Cedar Rapids, Iowa City, to the Quad Cities and Sioux City with trustworthy customer service and loans that will help them build their business the right way. Whether you need construction loans, multi family and senior housing mortgages, hotels, or other assistance with your investment property, they are on hand to help. Call them today at (515) 233-8228 or visit their website for more information.