Como financiar construção em terreno próprio with financed property guarantee is an arrangement where the lender’s primary source of repayment is cash flow from the property. However, in the event that the property is sold and the proceeds are not enough to retire the loan balance, the guarantors are responsible for paying off the remaining debt.

This type of guaranty is often referred to as a “full-recourse” guaranty and, properly drafted, como financiar construção em terreno próprio liability directly to the individual guarantors’ personal assets, such as bank accounts, stock balances, and houses (in addition to their own mortgaged principal residences). The guaranty can also be structured as a carve-out guaranty that only holds individuals liable for specific bad acts or loss events.

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Lenders can sometimes reduce their risk by requiring a non-recourse guaranty or by leveraging a government agency, like the SBA, FNMA, or USDA, to back the loan option. This helps them to confidently qualify a borrower who may not be able to provide sufficient equity, or whose credit score is low enough to require a guarantee. Other guaranty structures include a limited personal guarantee, which limits the amount that each individual guarantor is responsible for; and a declining personal guarantee that starts at 100% but falls over time based on certain hurdles, such as leasing of the property.