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IRA Lending

NASB is proud to be America’s IRA Non-Recourse Lender™, helping you use your self-directed IRA to purchase real estate as a tax-sheltered retirement investment.

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Use your self-directed IRA to purchase real estate with a non-recourse loan.

We offer a unique financing program for the purchase of property with a real estate IRA. Borrowers can choose from a variety of adjustable and fixed-rate non-recourse loans. We can usually provide approvals within 48 hours of receiving a complete application. With decades of servicing IRA non-recourse loans, we're ready to answer all your questions including:

  • How self-directed IRAs function
  • What a non-recourse loan is and how it works
  • What the IRS has to say about real estate in an IRA
  • The step-by-step actions on how to get started using real estate investments within your IRA to earn returns



Get the book on IRA Lending


IRA lending bookLeverage Your IRA is the #1 IRA real estate book in America, with everything you need to know about purchasing real estate with an IRA and IRA non-recourse loans. Here's what people have to say about Leverage Your IRA.

You can purchase your own copy of Leverage Your IRA here or receive a free digital version by calling us toll-free at 866-735-6272. 




 

Connect with an IRA Lending Expert


 


By clicking the Submit button you agree that you are providing an electronic signature expressly authorizing NASB to contact you by telephone at any of the telephone number(s) provided above using an automatic telephone dialing system or an artificial or prerecorded voice or via text/SMS message, even if the telephone number is assigned to a cellular telephone service or other service for which the called party is charged. NASB may also contact you via email using any email address you provided. This authorization overrides any previous registration on a federal, state or corporate Do Not Call Registry or any internal NASB privacy or solicitation preference you have previously expressed. You are not required to provide this authorization as a condition of purchasing any property, goods or services from NASB. As an alternative, you may call us directly at 866-735-6272 and we will process your request over the phone.

 


IRA Loan process and documents needed

The IRA Non-Recourse loan process will take roughly 30-35 days from the date we receive the loan application and appraisal fee.

First 10 days

  • Application/checklist
  • Driver’s license
  • IRA statements
  • Contract
  • Appraisal fee
  • Instruction letter to purchase real estate
  • Order property insurance
  • Disclosures mailed out

10-20 days

  • Contract titled correctly
  • Contract executed by the custodian
  • Satisfactory appraisal
  • Title commitment from title company/attorney

21-35 days

  • Loan docs sent to title company/attorney
  • A title company/attorney mail docs to IRA account holder to approve
  • Borrower mails docs to custodian/administrator to execute
  • Docs mailed back to title company/attorney; the loan is funded

To learn more, call us toll-free at 866-735-6272





IRA Non-Recourse Loan FAQs

North American Savings Bank has been providing loans to individuals since 1927. As a leader in the mortgage industry, NASB offers a variety of mortgage loans and is the only nationwide non-recourse lender for IRA real estate investments. We have retail lending branches in Missouri, and also offer nationwide lending.

A non-recourse loan is one in which the IRA account holder is not personally liable for repayment of the loan. The security instruments allow no recourse against the individual account holders or the balances of your IRA funds. In the event of default/foreclosure the lender can only look to the property as the sole source of repayment. The non-recourse lender cannot pursue other assets owned by the account holder or the IRA.

Anyone who has at least 30-40% of the purchase price vested in a self-directed IRA has the opportunity to buy rental properties using a non-recourse loan. This is subject to loan approval, including an acceptable real estate appraisal, as determined by NASB.

Our website offers a list of Self-Directed IRA Administrators who allow non-recourse loans. Please contact one of the administrators for more details. NASB does not represent or endorse any of these companies nor do they represent NASB. Please perform all prudent due diligence before setting up an account.

The minimum required for a single family home is 30%-40% of the purchase price and 40% of the purchase price for condos or 2-4 units. Insufficient cash flow or the condition of the property may require a larger down payment.

NASB can finance eligible property with non-recourse loans in all 50 states.

Allow 30-45 days from the date we receive your loan application and your purchase contract.

NASB offers a 5 or 10-year ARM, and 10, 15, or 20-year fixed. All loan programs are principal and interest payments.

Single family detached residential, warrantable condos, PUDs, duplexes, 4-plexes, and multi-family (5 or more units).

Ineligible properties include: Residential with large acreage, raw land, farms, manufactured or log homes, *non-warrantable condos, condo-hotels, co-ops, time shares, hotels, senior or assisted living facilities, non-franchise restaurants, entertainment properties, mini-storage. Square footage must be 750+ (per unit) for condos and 900+ (per unit) for all other properties.

*Condominiums: Condos must meet the following minimum criteria to be considered warrantable. The project building must be 100% complete, including common areas. The units within the building must be 60% sold and 33% of all building units must be owner occupied or second homes (versus tenant occupied). Condos not meeting these criteria are not eligible under our non-recourse program.

Yes. Discuss the LLC structure with your legal/tax advisor or an IRA administrator.

Yes, the funds would be distributed back into the IRA. This allows you the option of purchasing more assets within your IRA.

  1. Purchase transactions for investment property only.*
  2. IRA assets to be managed by a custodian in a self-directed IRA.
  3. IRA assets must be verified for purchase and reserves. IRA reserve requirement may be up to 20% of the loan amount, to be available in the event of insufficient cash flow to pay operating expenses and mortgage payments.
  4. No employment or income verification required.
  5. Properties must meet the debt service coverage ratio** guidelines.

*Must be income producing investment property (rental)

**DSCR: Debt service coverage ratio = net operating income/annual debt service

Typically, the financed property must generate sufficient net operating Income (rents minus operating expenses) to exceed the debt payments by 20%-25%.

Just email us here or contact an IRA representative at 866-735-6272.

NASB offers an unique financing program designed for the non-recourse financing requirements for IRA investments, and the application process is easy. Loan approval is generally within 48 hours of receipt of a complete application, and is subject to appraisal and verification of IRA funds for closing.

NASB will quote interest rates on a case by case basis of the collateral type and down payment. The following fees (subject to change without notice) and costs apply:

  1. 1% origination fee to NASB
  2. $485 underwriting fee to NASB
  3. $410 processing fee to NASB
  4. $16 Flood Certification fee
  5. $500-$600 appraisal fee (including rent comps), due at time of application
  6. $_____Settlement/escrow fee
  7. $_____Title Insurance
  8. $_____Recording fees
  9. $_____Mortgage registration or other state fees (if applicable)
  10. $_____Prepaid Interest and taxes*
  11. $_____Initial Hazard Insurance Premium*
  12. $200 Attorney Review Fee

*Escrows for taxes and hazard insurance are required. Additional costs may be incurred for commercial and multi-family properties.

  1. Completed Property Eligibility Quote Form
  2. Current detailed Rent Roll or copies of signed leases (leases or rent roll for currently unoccupied properties are not required)
  3. Most recent asset statement verifying IRA assets for purchase and reserves
  4. Purchase/Sales contract, signed by the IRA account holder and the administrator. The contract must show the buyer to be in the name of the IRA or LLC
  5. Acceptable real estate appraisal for the property to be financed. Appraisal fee required at the time of loan application before NASB will order the real estate appraisal


Self-Directed IRA Custodians
Want to learn more?
If you're interested in learning about investing in real estate through a self-directed IRA reach out to one of these self-directed IRA companies.

Meet our IRA Lending Team


jason zook

Jason Zook


IRA Loan Officer
NMLS 415110
Call: 816-508-2397
Email: jzook@nasb.com

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matt alllen

Matt Allen


Vice President,
Real Estate Business Development
 
NMLS 415037

Call: 816-508-2203
Email: mallen@nasb.com

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IRA Commercial Lending Experts


jeff wagner

Jeff Wagner


Vice President,
Commercial Real Estate Loan Officer

Call: 816-214-8116
Email: jwagner@nasb.com

View profile

1This 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.

2Based on 2,615 NASB closed loan customer surveys from 1/1/2018 to 5/28/2019.

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NMLS ID# 400039.

Not all products are available for collateral located in all states or for all amounts. Other restrictions and limitations may apply.

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