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Home Equity Loans

A home equity loan can grant you access to financial equity that your home’s value currently has. Instead of working with a giant bank or corporation, you can go through a much more personal experience when working with our non-recourse lenders. Learn more about home equity loans, and contact First Western Federal Savings to begin.

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What is a home equity loan?

A home equity loan is a type of loan that allows you to access the equity on the property, without having to sell the property. Here’s an example:

If you bought your house for $200,000
& have paid off $40,000 of your mortgage,
you’ll have $160,000 to go.
HOWEVER...let’s say your house is currently valued at $360,000
This means you have a maximum of $200,000 of equity to work with.

Normally, you wouldn’t be able to access that money unless you sold the property. With a home equity loan, you can access these funds for nearly anything you want. Essentially, a home equity loan allows you to borrow in respect to your home’s value — if what you owe is less than what your home is worth.


Home Equity Loans For Investment Properties

When you apply for a home equity loan with First Western Federal Savings Bank, this can only be applied towards an investment property. We offer these loans to investors who use their self-directed retirement accounts or personal funds to purchase this type of property, such as a vacation or long-term tenant rental.

Home Equity Loan:
Requirements & Application

Many of the requirements are the same as if you were applying for a non-recourse loan, but the difference with a home equity loan is if you are already the owner of the property. For some people taking out a home equity loan, their self-directed IRA or 401(k) is still the owner, because they’re still paying off the existing loan.


Property is Owned By Retirement Account Property is Owned By You Personally
  • Must be enrolled in a self-directed IRA or solo 401(k).
  • Have at least enough in your IRA to put 40 percent down.
  • Understand custodial requirements, and execute a purchase agreement in the name of your self-directed IRA.
Your qualifications will be based on…

  • Credit
  • Income
  • Ability to pay the loan


This is considered a cash-out refinance, and is virtually the same process for applying to other loans through First Western Federal Savings Bank. Again, there is a slight difference if you are the personal owner of the property.

Property is Owned by Retirement Account Property is Owned By You Personally
Fill out our online application — the same that’s used for non-recourse loans and refinancing. Contact our non-recourse lenders, and we’ll send you our Investor Application.

In Summary:

  • A home equity loan through First Western Federal Savings Bank cannot be through or with a primary residence, and only works for investment/rental properties.
  • There are some slight differences in the requirements and the applications, depending on whether you own your property personally or not.

As you can imagine, getting access to equity and additional funds has a number of advantages. Applying for a home equity loan through First Western Federal Savings Bank is the best place for you to start.

Lower Interest Rates 

There’s a good chance that you could refinance with a home equity loan, and end up lowering your interest rates in the process. Lower interest rates mean a lower monthly payment, allowing you to keep a little extra money in your pocket.

Flexible Usage 

With a home equity loan, you can use these added funds in a variety of ways. Purchase another rental property, renovate an existing one, finish that landscaping and deck project — the sky is practically the limit.

Access to Home’s Equity

A home equity loan allows you to access the money that your rental home is worth, without ever having to put it on the market. Avoid the hassle of selling a home and get this type of loan instead.


Choose First Western Federal Savings Bank

Our team of non-recourse lenders has specialized for decades in rental property loans, and are more than happy to help answer any questions when it comes to a home equity loan. We have an incredibly knowledgeable staff, we offer best-in-class service, as well as competitive rates to anyone who’s interested in applying. A home equity loan could be an extraordinary financial opportunity for you, and our team is standing by to help you get started. Apply online with First Western Federal Savings Bank today, we look forward to working with you!

Email: Roger St. PierreNMLS #768919
Email: Jeff FullertonNMLS #768918
Email: Nick ConwayNMLS #1606997

Disclaimer: First Western Federal Savings Bank is not affiliated with any of the listed custodians, administrators, or facilitators nor do we receive compensation to provide you with this information. We are also not responsible for the website content at third-party sites. First Western Federal Savings Bank and its employees do not provide tax, legal, or investment advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or investment advice. You should consult your own tax, legal, investment advisors before engaging in any transaction.


Copyright 2017 First Western Federal Savings Bank - 402 Main Street, Rapid City, SD 57701 Local Phone: (605) 341-1203 - Fax: (605) 394-0084 - NMLS #631666