Non-Recourse Loan / HELOC

[IOU]

Here is the definition of a "Non-Recourse Loan" as provided by the IRS site:

Non-recourse loans

[justbroke]

Usually, only a first mortgage that was "purchase money" is non-recourse if your State so designates (e.g. California).

HELOCs are not generally non-recourse because they are usually not purchase money loans. Now, if this was some 80/20 loan, and the HELOC was the 20% and used to actually purchase the home, then it may be a non-recourse loan based on the State in which the residence is located.