Recourse verses Non-Recourse Loans in Creative Financing

[John Leavelle]

Hello BP community,

Not sure if this is the right forum.

While looking for all my creative finance options I came across the terms Recourse Loans and Non-Recourse Loans.

My understanding is Recourse requires collateral (The Property) in case the borrower (Me) defaults on the debt.  “Full Recourse” meaning the lender can go after my personal property as well to meet the obligation.  “Non-Recourse” means collateral only and no personal property at risk.

Am I understanding this correctly?

Also, what are the pro’s and con’s for each type?

Any inputs will be appreciated.

John