We carried a flat "non-recourse" answer on several permanent-loan boxes that also list a bank as an eligible source. That was wrong, and it would have told a sponsor something untrue: that a bank quote on that deal comes with no guaranty. Recourse isn't a property of the deal type. It's a property of who's writing the check.
Agency (Fannie/Freddie), HUD, life company and CMBS paper is non-recourse as the standard, with customary bad-boy carve-outs, not because the sponsor negotiated it, because that's how those programs are built. Construction financing carries a completion guaranty, which typically burns off at certificate of occupancy or stabilization. SBA is full recourse with a personal guaranty; that's a program rule, not a credit decision, and it's never coming off the table.
Bank balance-sheet lending is recourse by default, and most community banks and credit unions rarely bend on that. But larger banks and portfolio lenders will underwrite non-recourse, usually at reduced leverage, typically 55-65% LTV, for a strong sponsor with a track record on a stabilized, durable-cash-flow asset. That's a real conversation to have, not an assumption to make in either direction. Debt funds sit in between: recourse posture varies by fund and by deal, and non-recourse tends to open up on institutional-quality transactions above roughly $10M, at a rate premium of 50-100 bps.
"Non-recourse through a life company at 60% LTV, or 70% with a bank on a recourse basis. That's the real choice, and it's the kind of thing that wins a mandate."
Don't ask "is this non-recourse." Ask which sources on your file are non-recourse by structure, and what leverage a bank will give up to get there if you want one on the sheet anyway. The trade between leverage and guaranty is usually more valuable to negotiate than the rate.