Self Directed IRA Loans

Non-Recourse Loans for Self Directed IRA

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