IRA Non‑Recourse Loans for Self‑Directed IRAs
Use your self‑directed IRA to purchase investment real estate with a non‑recourse loan from NASB—purpose‑built financing designed for retirement accounts.
How IRA Non‑Recourse Loans Work
An IRA non‑recourse loan is financing made to your self‑directed IRA for purchasing investment real estate, where the loan is secured only by the property itself (not your personal assets). Because the IRS prohibits using your IRA as collateral for a personal loan, non‑recourse structures are used for compliant real estate investing within retirement accounts.
Why NASB for IRA Lending
- Specialized Expertise: NASB has decades of experience originating and servicing IRA non‑recourse loans, and we’ve built processes tailored to self‑directed investors.
- Fast, Streamlined Approvals: We can typically provide approval decisions within 48 hours of receiving a complete application.
- Flexible Options: Choose from a variety of fixed and adjustable non‑recourse loan programs to fit your strategy.
- Nationwide Capability: NASB offers IRA non‑recourse financing nationwide through its online channels.
Step‑By‑Step Process
- Set up your self‑directed IRA (or IRA LLC/Trust if applicable) with a qualified custodian.
- Identify an investment property (non‑owner‑occupied) and have the purchase documents titled in the name of the IRA.
- Apply with NASB: Submit your application and required documents. We typically issue approval decisions within 48 hours of receiving a complete file.
- Underwriting & Closing: Processing timelines for IRA loans generally run about a month to a month and a half in the industry (the range is often ~30–45 days, depending on readiness and third parties).
- Own the asset in your IRA: All income and expenses flow to/from the retirement account, supporting your long‑term strategy.
Eligibility & Considerations
IRA balance & reserves: Your IRA should have sufficient funds for down payment, closing costs, and reserves. Property cash flow and condition: Investment‑grade properties with rental income generally fit best. Custodian readiness: Having your self‑directed IRA and titling prepared up‑front can accelerate closing.
Meet our IRA Lender
Joseph Dixon
Assistant Vice President, Relationship Manager, IRA Lending
Call: 816-508-2398
Email: jdixon@nasb.com
Joseph has helped hundreds of self‑directed investors navigate IRA non‑recourse financing for real estate over the past decade.
IRA Non-Recourse Loan FAQs
Here are answers to the most common questions about using a self‑directed IRA with a non‑recourse loan.
What is an IRA non‑recourse loan?
At NASB, an IRA non‑recourse loan is financing provided to a self‑directed IRA, with only the IRA‑owned property as collateral. Generally, non‑recourse financing protects the IRA holder from personal liability.
Who is eligible for an IRA non‑recourse loan?
NASB allows borrowers with at least 35% of the purchase price vested in a self‑directed IRA to qualify. Typically, eligibility depends on IRA balance, appraisal, and underwriting approval.
What down payment is required?
The minimum required for a single-family home, condo, townhome, or 2-4 unit property is 35% of the purchase price. Most non‑recourse lenders require higher down payments because of risk and IRS rules that prohibit personal guarantees.
How do I set up a self‑directed IRA?
NASB provides a list of administrators that permit non‑recourse lending, though we do not endorse specific companies. Self‑directed IRAs must be established through an approved custodian that permits real estate.
What property types are eligible?
NASB finances SFRs, warrantable condos, PUDs, duplexes, 4‑plexes, and multifamily (five or more units) properties. Generally, lenders prefer residential income‑producing properties for non‑recourse loans.
Which properties are ineligible?
NASB finances SFRs, warrantable condos, PUDs, duplexes, 4‑plexes, and multifamily (five or more units) properties. Generally, lenders prefer residential income‑producing properties for non‑recourse loans.
Where does NASB offer IRA non‑recourse loans?
NASB lends in all 50 states except New York and in the Chicago and Baltimore metropolitan areas. Non‑recourse lending availability varies by state regulations and lender policies.
How long does closing take?
NASB generally requires 30–45 days from receipt of a complete application and purchase contract. Non‑recourse loans require additional documentation and custodian coordination, which may extend the timeline.
How fast can NASB provide an approval?
NASB may provide approvals within 48 hours of receiving a complete application. Fast review depends on timely asset and property documentation.
What loan programs are available?
NASB offers fixed‑rate and adjustable‑rate non‑recourse IRA loans. Lenders typically offer simplified ARM and fixed‑rate options for IRA financing.
What appraisal requirements apply?
NASB requires an acceptable appraisal that meets internal standards before loan approval. Appraisals confirm value and rentability for IRA loans.
Does NASB recommend IRA custodians?
NASB does not endorse specific custodians, though we provide a resource list. Borrowers should conduct due diligence when selecting a custodian.
Looking for more detailed answers?
Explore our complete IRA Non-Recourse Loans FAQs, including eligibility, property requirements, lending availability, and the steps to get started.
What Our Customers Say
general non-qm reviews
*This is not intended to and does not constitute legal advice or financial/investment/tax advice. North American Savings Bank does not make any guarantee or other promise as to the results obtained. You should consult with an attorney or other professional to determine what may be best for your individual needs.