Continued from page 1
With banks and other lending institutions anxious to provide you with an apartment loan, new loan options have emerged in recent years. Generally speaking, smaller banks and other lending sources like direct lenders have a greater degree of flexibility in what they can offer borrowers. In order to attract larger numbers of borrowers, many lenders now offer non-recourse.
A traditional recourse loan means that lender has claim on personal or corporate assets in event of a default by borrower. On other hand, a non-recourse apartment loan means lender cannot hold you personally liable if you fail to repay debt as promised. The only recourse for compensation to lender is to take property you've pledged as security for your loan, but he cannot claim any other assets or money from you if you default.
Whichever apartment loan option you decide on, it's important to be certain you understand details. It's vitally important that you choose a lender that has both experience and inclination to take time to sit down with you and answer your questions clearly. Getting your apartment loan from a source you can trust will go a long way in helping you find success and enjoyment in exciting world of property investing and management.