IRA Lending with Non-Recourse Loans

November 2, 2015

Don’t have enough in your retirement account to buy that investment property you have your eye on? Your IRA can get a mortgage, but it has to be a specific type of mortgage referred to as non-recourse loans.

Non-recourse loans just ensure that the IRA owner cannot be held personally responsible for repaying a loan for the IRA. Remember the IRA has a few options when buying investment real estate. It can:

• buy the property outright with sufficient IRA funds in the account
• partner with another IRA or individual to pay for part of the property the IRA might not be able to afford (or to split the risk with someone else)
• be issued a non-recourse loan to fund the full purchase of an investment property

Below, the Senior Vice President of First Western Federal Savings Bank, Roger St. Pierre, outlines important information every IRA owner should know about non-recourse loans.