In this episode, we dig into non-recourse loans for investments purchases using your IRA or self directed vehicle.
This type of loan is higher risk to the lender, and their underwriting policies are going to me more conservative as a result. Typical guidelines you might find are as follows:
Down payment of at least 30%. Condos as high as 50%
10% – 15% cash reserves in the plan at the time of the loan
Terms range from 5/1 ARMs to 25-year fixed-rate loans
Rates will generally be 1% – 1.5% higher than a typical investor loan with a personal guarantee.
Clean, cashflow properties work well. Options are limited for properties requiring extensive repairs or raw land.