1. 401K (Solo 401K) Non Recourse Loans

    401(k) or Solo 401(k) Non-Recourse Loans are a great way to leverage your 401(k) funds to get a better return on your money. Financing the purchase or refinancing a purchase of real estate inside of a Solo 401K has some distinct advantages over using a Self Directed IRA to buy and fund real estate purchases. The process is the same no matter the retirement entity purchasing the property and fundin…Read More

  2. IRA Loans

    IRA loans are a great way to leverage your own retirement funds and make them stretch farther in acquiring investment real estate inside of your self directed retirement plan. Whether your plan is a Self Directed IRA, Solo 401K, IRA LLC, or other qualified retirement plan, you can use as little as 40% of the purchase price in your own retirement funds and combine that with a non recourse IRA loan …Read More

  3. Recourse vs Non Recourse Loans

    Recourse vs Non-Recourse Loans. What is the difference? You may hear about Non-Recourse Loans and wonder what that is all about and how can you get one. Let's start with Recourse Loans first which is the typical loan you may sign at a bank or credit union when you borrow money for a car or a home or commercial building. You usually sign the promissory note in your own name or your companies name…Read More

  4. Non Recourse Loan Underwriting Criteria

    Non Recourse Loan underwriting criteria with First Western Federal Savings Bank is very straightforward. We look at 4 areas when determining whether or not to make a Non Recourse Loan. The main areas are: Does the IRA or SoloK or IRA LLC have enough money? What I mean by that is, does the Plan have the requisite 40% down payment necessary for most properties we finance, plus closing costs, and li…Read More

  5. Application Process

    The Application Process for a non recourse IRA or Solo 401K (or LLC) loan with First Western Federal Savings is very straightforward. Just click on the green Non-Recourse Loan Application-Get Started Today box on the lower right hand side of every page of the website, or the Application Process Tab at the top of every page of the website. That will take you directly to our Application and Docume…Read More

  6. IRA Loan Debt Service Coverage

    IRA Loan Debt Service Coverage is the ability of the rental property that the self directed IRA (the Plan) owns to generate enough income or rental stream to pay all the operating expenses of the property and the loan payments with a cushion. A Non Recourse loan can only be paid back by the income and liquid assets in the Plan. So when a lender is evaluating whether or not to make a non recourse l…Read More

  7. Titling Self Directed IRA Owned Properties

    Titling self directed IRA owned properties (naming the entity) is different than owning a property in your own name or privately funded LLC. If your self directed IRA is held by a custodian or administrator and you purchase a property with that account, the name on the Deed or ownership document filed with the county recorder in the area of the country you are purchasing the property in must show …Read More

  8. Debt Service Coverage: What Does It Mean?

    Our non-recourse lenders will dive into the debt service coverage ratio (DSCR) in today's blog. Understanding the DSCR is instrumental in planning how to leverage your self-directed IRA with purchasing a rental property. Read on to find out everything you need to know about the DSCR. How Much Debt Will a Property Support? Purchasing real estate within an IRA is a good place to invest IRA funds, es…Read More