Recourse Loan Products

NHSA extends a standing invitation to every NeighborWorks® organization to sell loans with recourse to NHSA. The loan package can be of any size required to meet the NeighborWorks organization's cash flow needs. Recourse loans can be used for purchase, rehabilitation, closing costs, and down payment assistance. NHSA will also purchase Section 8 loans.

Additional Guidelines
  • Loans must be originated by, or assigned to, a NeighborWorks organization.
  • Subject properties must be owner occupied.
  • Loans must be fully amortized, with the remaining term of forty (40) years or less, and the weighted yield of the group of loans offered for sale must be equal to or greater than NHSA's cost of funds.
  • Loans must be current at the time of sale and are purchased with recourse. This means that any loans that become 90-days or more delinquent must be substituted with another current loan of equivalent value or repurchased back by the seller.
  • A reserve of either loans or cash, or a combination of loans and cash, is required for the recourse loan purchase program.
  • NHSA does not purchase delinquent, deferred or non-amortizing loans.
Recourse Reserve Policy
To increase leverage opportunities for NeighborWorks organizations that have established a record of strong performance, NHSA has established an enhanced leverage reserve requirement, allowing reserves to be provided in either performing loans or cash. Additionally, all loans that have paid on time for 24 consecutive months will no longer require reserves. Other policies, procedures and forms for organizations that access the NHSA Recourse Loan program can be found in the NHSA Recourse Seller Guide.