In order to obtain a recourse loan, the borrower or borrowing entity must provide a personal guarantee of the loan amount against their own assets. This ensures that should the borrower default on the loan, lenders can seek financial damages from the borrowers directly. Generally, recourse is more commonly required when a borrower or borrowing entity is not financially strong enough on its own, or if the property itself doesn't fall into a category that makes it conventional. For example, hard money loans are typically full recourse.