Specialty program
Non-recourse loans, matched to your deal
A non-recourse loan limits the lender's remedy to the property and its income: if the loan fails, the lender takes the collateral and cannot pursue the borrower's other assets, except under carve-outs that cover bad acts such as fraud, misapplied funds or environmental harm. It is standard for agency, securitized and life company executions and rarer at banks, and lenders who offer it price and size the loan for the risk they are keeping. Programs differ on the carve-outs and on what they require in exchange, which is why one file deserves several answers.
- 5,000+loan programs screened
- 5–8matches on a typical deal
- $0 upfrontto submit and compare offers
- 0.50–1.00%broker fee, paid only at closing
Who is a non-recourse loan actually for?
Owners of stabilized property who want the debt to stand on the asset alone: a sponsor with several properties who cannot cross-expose them, a partnership whose investors will not sign personally, an owner planning a long hold who wants the loan to survive changes in the ownership group. Transitional and construction deals can be non-recourse too, through debt funds and some bridge lenders, at a price that reflects the lender carrying the execution risk.
What do non-recourse lenders disagree about?
The carve-outs and the trade. Programs take different views on how broad the bad-act carve-outs run and whether any of them convert the whole loan to full recourse, what leverage and coverage they need to give up recourse, whether a completion or interest guaranty is required on a transitional deal, how much sponsor net worth must stand behind the carve-outs, and whether the borrower must be a single-purpose entity. The words non-recourse appear in every term sheet; what they cover does not match between two lenders.
What should be ready before a non-recourse file goes out?
The operating statements and rent roll, the ownership structure and who would sign the carve-out guaranty, a summary of the sponsor's net worth and liquidity, and any environmental or title matters that a carve-out would touch. Files that arrive with the entity structure already drawn as a single-purpose borrower get taken seriously faster, because that is the structure a non-recourse lender expects to see.
How does getting matched actually work?
You describe the deal once — about five minutes — and it is screened against 5,000+ loan programs. Most deals return 5–8 matches, and the median first offer arrives in under an hour. There is $0 upfront; the fee is 0.50–1.00%, paid only at closing.
YieldStack is a commercial mortgage brokerage, not a lender. The rate, the leverage and the credit decision belong to the lenders competing for your deal; our job is making sure the right ones see it at the same time, so the terms you compare are real competition rather than one desk’s appetite.
What do lenders actually look at?
Every program weighs these in its own way — which is the argument for several quoting at once.
- Whether the property's cash flow alone supports the loan at the proposed leverage
- The sponsor's net worth and liquidity behind the carve-out guaranty
- Environmental, title and condition matters a carve-out would reach
- Whether the borrower is a single-purpose entity with the expected covenants
- For transitional deals, what completion or interest support the lender still wants
Frequently Asked Questions
Does non-recourse mean nobody is liable?
No. A carve-out guarantor is liable for bad acts such as fraud, misapplication of rents, environmental harm or an unpermitted transfer. Outside those, the lender's remedy is the property.
Which lenders offer non-recourse loans?
Agency, securitized and life company lenders as a rule; debt funds and some bridge lenders on transitional deals; banks less often and usually only for strong borrowers on stabilized assets.
What are springing recourse events?
Carve-outs that convert the entire loan to full recourse if they occur, commonly a voluntary bankruptcy filing or a prohibited transfer. They are the terms to read most carefully.
Can a construction loan be non-recourse?
Some are, from debt funds and specialist lenders, usually with a completion guaranty carved back in. The lender is carrying more risk and prices for it.
Does giving up recourse cost more?
Often the lender asks for lower leverage, more coverage or a higher rate in exchange, though for agency and securitized loans non-recourse is simply the standard. The trade varies by lender group.
Do I still need a guarantor?
For the carve-outs, yes. Lenders want a person or entity with real net worth behind the bad-act guaranty, and they underwrite that guarantor even though the loan is otherwise non-recourse.
Is YieldStack a lender?
No. YieldStack is a commercial mortgage brokerage, not a lender. Every term sheet comes from a lender in the network and is subject to that lender's underwriting.
Does it cost anything to see terms?
No. It costs $0 upfront to submit a deal and review offers; YieldStack's broker fee is 0.50–1.00% of the loan amount and is paid only at closing.
Is financing guaranteed?
No. Every credit decision is made by the lender; YieldStack arranges the introductions and negotiates on the borrower's side, and no loan, rate, or closing is guaranteed.
Next step
One deal.Several lenders.
YieldStack is a commercial mortgage brokerage, not a lender.