Whereas a nonrecourse loan only gives them the option to seize agreement-specific collateral.
Consider the loan-to-value (LTV) ratio, or how much the lender is willing to loan you, and whether they ask for collateral. It’s important to note that a recourse loan lets the lender go after additional personal assets if you default. Whereas a nonrecourse loan only gives them the option to seize agreement-specific collateral.