How Can I Buy Real Estate Within an IRA?

At First Western Federal Savings Bank, we are a specialized non-recourse lender for your self-directed IRA to help you buy real estate within your IRA. It’s not just our specialty, it’s our passion!

Call: 800-908-8845

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What is a non-recourse loan?

The non-recourse loan lender agreement works like this: the borrower puts up collateral for the loan, which is typically some sort of real property. One of the biggest benefits of a non-recourse mortgage loan is that the borrower is not held personally responsible for the loan, since the non-recourse lender can only seize the collateral associated with the loan and nothing else.

A non-recourse IRA Loan is secured entirely by the collateral. What this means is that – in the event of default – there is absolutely no recourse or ability to collect the mortgage loan from the IRA owner personally or the IRA itself.

When the IRS established the rules for IRAs back in 1975, they declared three basic types of prohibited investments:

  • Life Insurance
  • S Corporations
  • Collectibles (Stamps, Artwork, Rugs, Guns, Coins, And other types Personal Property)

The IRS has also established regulations regarding Prohibited Transactions between your IRA and certain people that are classified as a “Disqualified Person.” Most all other assets are available as IRA Investments as long as your IRA Custodian is in agreement.

Did you know…
The ability to buy real estate with your self-directed IRA is allowed,
and has been for quite some time?

Contact us today and see how your premier non-recourse loan lender, First Western Federal Savings Bank, can help you buy real estate with an IRA. Your non-recourse loan is waiting—apply today!


What types of property can I buy with a non-recourse mortgage loan?

The point of buying real estate with a mortgage loan is for it to generate income. Here are the four main types of properties that can be purchased with your IRA loan:

Residential Property
This type of property includes single family residences, including condos and townhomes.

Commercial Property
This type of property typically houses businesses, offices, or retails stores.

Multi-unit Property
This type of property refers to things like multifamily homes or apartment buildings.

Agricultural Property
This type of property can be purchased and can generate income with a lease contract. It typically supports crops or livestock.

How to begin…

  1. Establish an account with a self-directed IRA custodian.
  2. Find an acceptable income producing property that meets your investment goals.
  3. Execute a purchase agreement in the name of your IRA according to your custodian requirements.
  4. Apply for a Non-Recourse Loan with First Western Federal Savings Bank.
  5. Complete a “Direction Of Investment” form for your IRA custodian directing them to fund your purchase with your IRA funds.

Preparing for retirement can seem like a daunting and stressful task, and the longer you wait the worse it is going to get. If you already have an IRA, especially a self-directed one, you have the freedom to make whatever investments with it you choose. Buying real estate can create a lucrative nest egg to help quash any ideas you might have about work longer than you wanted to. Contact the non-recourse loan lender experts at First Western Federal Savings Bank today, and let us help you reach your real estate goals with a non-recourse loan.