How is an IRA Non-Recourse Loan Different from a Conventional Loan?

An IRA Non-Recourse is only secured by the real estate. The IRA/account holder is not personally liable. If the borrower defaults, the lender can only seize the collateral (real estate).

Qualifications for a Non-Recourse Loan

When applying for Non-Recourse IRA Loans, North American Savings Bank considers three main variables when determining qualifications:

1. Property Condition

  • Must be in rentable condition

  • Must be a marketable property

2. Cash Flow

  • The property must have a strong cash flow

3. IRA Funds

  • Need to have enough funds for the down payment plus additional reserves.