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.