The first question most people ask about credit partnerships is: *"What if something goes wrong?"* The answer is built into the deal structure itself.
Recourse vs. Non-Recourse
With a standard recourse loan, a lender can pursue your personal assets — wages, bank accounts, other property — if you default. With a non-recourse loan, the lender's only remedy is the property itself. Nothing else.
That distinction is everything.
How This Applies to You
Every DSCR loan used in a QVA Holdings credit partnership is non-recourse. Even though your credit score is attached to the application, your personal assets are legally off-limits in any default scenario. Your home stays your home. Your savings stay your savings.
The LLC Shield
Each property is also held inside a separate LLC — a legal entity that exists independently from you. If anything goes wrong with that deal, the liability stays inside the LLC. It doesn't reach your personal finances.
Think of it as a fireproof safe inside a fireproof room.
What About Your Credit Score?
Because the loan is a DSCR loan held in an LLC, it doesn't appear as a standard personal liability on your credit report. Your score continues to function normally for your own mortgages, car loans, and credit cards.
Everything in Writing
Before any deal moves forward, you sign a formal legal agreement documenting your payout, the non-recourse terms, the LLC structure, and your rights as a credit partner. No verbal promises. No ambiguity.
The Bottom Line
Non-recourse lending isn't exotic — it's the standard structure for commercial real estate in the United States. Credit partnerships simply allow individuals with excellent credit to participate in that structure, with every protection that comes with it.
