Non-recourse loans typically apply to commercial real property, usually single tenant properties. The rate of interest and the term of the loan is correlated with the underlying lease (usually a NNN lease) and the credit worthiness of the tenant of the commercial property, based on ratings provided by Standard & Poor, Moody’s, or Fitch. Only two types of entities qualify for such a rating, namely:

Government

Publicly traded corporations (usually retail)

Although credit and mortgage financing remains tight, non-recourse financing is readily available with the right credit tenants in place on the property, assuming that the borrower is credit worthy and has sufficient equity or down payment.