Everything You Need To Know About Qualifying for an IRA Loan
Do you plan on applying for a loan and still have many questions in your mind? Do not be concerned. First Western Federal Savings Bank has the answers to your questions about non recourse financing.
How Do You Qualify for a Loan?
If you’re confused about applying for a non recourse loan, there are three main things that are included in the qualification for a loan:
- Your IRA or Solo 401(k) must have at least 40% down, plus closing costs and some liquid reserves left to operate the property.
- The property must be in rent-ready condition or nearly so with no major deferred maintenance issues or rehab needed.
- The property must generate positive cash flow to at least a debt service coverage ratio of 1.25 (meaning that Net Operating Income must be at least 125% of the principal and interest payments on the loan).
Why Choose Us?
First Western Federal Savings Bank has been a portfolio lender for over 40 years. We have the right expertise and skills to help your self directed retirement plan invest in real estate.
Our knowledge will benefit you. You can achieve your financial goals with the help of our IRA Non-Recourse Loans. The application process is quite simple. You just have to create an account with a self-directed IRA custodian or have a Solo 401(k) and prepare the documentation that is required. You can check the loan application requirements at our page.
Get In Touch!
To know more about what it takes to qualify for a IRA non recourse loan, contact the lenders at First Western Federal Savings Bank. We would be happy to talk about your financial goals and help you with your loan requirements. Give us a call today.