Why Do I Need a Non-Recourse Loan with a Self-Directed IRA?
Recourse loans sign a personal guaranty at closing. This allows the lender the right to recoup any losses from the borrower that weren’t recovered from the foreclosure sale.
Non-recourse loans are just the opposite. There is no personal guaranty signed at closing. The security for the loan is the property itself not the Self-Directed IRA or the individual. The lender can only recover the property in case of a foreclosure. They have no recourse against the Self-Directed IRA or the account holder.
Can I Refinance a Property that I own in my Self-Directed IRA?
Yes, you can refinance a property you currently own in your Self-Directed IRA with a non-recourse loan. NASB allows an IRA to take the equity out of the property and put liquid funds back into the IRA. This allows the account holder the opportunity to improve the property or purchase more assets in the Self-Directed IRA. NASB typically lends up to 70% of the original purchase price or 50% of the current value, whichever is less.
How Do I Get Started?
Please contact NASB at 1-866-735-6272 if you have questions about this loan option.