In California, what type of mortgage is often made non-recourse?

In California, residential mortgages are often made non-recourse, which means that the lender cannot pursue the borrower's other assets beyond the collateral (the home) in case of default. This is particularly relevant in scenarios involving purchase money loans, where the loan is used specifically to buy a residential property. The rationale behind non-recourse loans is to protect homeowners from losing personal assets if they cannot repay the mortgage, thereby providing them with a safety net during financial difficulties.

This form of lending incentivizes homeownership by reducing the potential financial risks for borrowers. Since other types of mortgages, like commercial mortgages, generally do not carry the same protective measures, they tend to allow for recourse against the borrower's other assets upon default. Similarly, bridge loans and home equity lines of credit have their own specific risk structures and are not typically structured as non-recourse loans in the same manner as residential mortgages.