Self Directed IRA Loans

Non-Recourse Loans for Self Directed IRA

COVID-19 LOAN STATUS – As the pandemic begins to slow down we will see interest rates change, FICO requirements tighten and Loan To Value ratios tighten up. All terms are subject to change. Please call for the most up to date information.

This loan is designed for a self-directed IRA owner. Although the IRA is administered by a custodian or trustee, the account holder directly manages what the account invests in. You have complete control over selecting and directing your retirement investments.  

A traditional IRA is limited to investing in common securities like stocks, bonds, certificates of deposit, and mutual or exchange-traded funds. 

A self-directed IRA allow the owner to invest in a broader range of assets, including precious metals, commodities, limited partnerships, private placements, tax lien certificates, and what I’m most interested in, real estate.

The self-directed IRA hold property as an asset. Generally, these properties are rental units and therefore, are long term holds.  The only type of loan an IRA may have is a non-recourse loan.  This means that the IRA account holder is not personally liable for repayment of the loan.  In the event of a default/foreclosure, the lender can only look to the property as the sole source of repayment.

The following properties are eligible for a non-recourse loan:

  • SFR
  • Warrantable Condo’s
  • PUD
  • Duplexes
  • TriPlexes / Quadplexes
  • Multifamily (5 or more units)

Current Loan Options

1-4 Family (min $50,000)

  • 3,5 or 10 yr ARM
  • 10-20 yr Fixed
  • 70% Max LTV
  • Max Term 20 yrs
  • DSCR Min 1.2-1.25

Multifamily (min $300,000)

  • 5/1 ARM
  • 15-20 yr Fixed
  • 65% Max LTV
  • Max Term 20 yrs
  • DSCR Min 1.3