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|Type of debt||Pros||Cons|
|Recourse||Less stringent underwriting and loan approval requirements. Recourse loans may take lower credit scores, offer a lower interest rate, or higher debt to income (DTI) ratio.||The borrower is held personally liable in the event of default.|
|Nonrecourse||More stringent underwriting loan approval requirements, which may require low debt to income (DTI) ratio, larger down payment, or higher credit score. May charge higher interest rates than a recourse loan.||The borrower is not held personally liable in the event of default.|