THE REFINANCING PROCESS

1. APPLY

Fill out our IRA non-recourse loan application, available at our website (the same one for applying for a non-recourse loan).
You’ll need to attach a couple of additional items.

Copy of the Closing Statement from when you purchased the home with your retirement plan

Copy of the Current Lease with the tenant

Income and Expense history to see if the property is generating revenue or costing funds

Copy of the Loan Agreement AND Payment History (if the loan is through another non-recourse lender)

2. SUBMIT

Send us your application and supporting documents. We’ll usually get back to you within 48 hours from receiving your application

3. SIGN

It normally takes about 30 days from when we make our loan decision to closing the escrow. If approved, you can designate a closing or title company near you and sign the loan documents.

HOW DO I QUALIFY?

Our lenders look directly at the borrower, which in this instance is considered your self-directed IRA (or an IRA LLC or Solo 401K). In order to qualify, the rental history and IRA statements (from the borrower) should be in good order. Copies of leases will also be reviewed as proof that the property is rented and producing income. The asset that you’re looking to refinance should have evidence that it is profitable.
We also review the property itself to make sure that it’s in good condition. Since this is the collateral that secures the loan, your property should be both profitable and well-kept/looked after

WHO SHOULD LOOK INTO REFINANCING?

Anyone who’s an investor and already owns rental properties (inside of their self-directed IRAs, IRA LLSs, or Solo 401K Trusts) would be a good candidate for refinancing. This can be for vacation property financing or rental property financing. Additionally, the rental properties need to be in the United States, and be owned free and clear of any debt or already have a non-recourse loan — this type of refinancing is specific to properties that have been purchased with a self-directed IRA, IRALLC or Solo 401K Trust.

DOES MY EXISTING NON-RECOURSE LOAN NEED TO BE WITH FWFSB?

No. You can have a non-recourse loan through another lender, or you can even own the property entirely and have no debt.

WHAT IF MY LOAN ISN'T COMPLETELY PAID OFF?

You do not have to be done on a loan payment to refinance; in fact, many people looking to refinance a loan (of any kind) are doing so because they want to pay less interest. Having more of your loan to pay off can still very well mean you’re an ideal candidate.

When you’re ready to consider refinancing your rental property, First Western Federal Savings Bank is here to help. Our non-recourse loan lenders have more than three (and almost four) decades of experience, and we have incredible expertise and understanding of the refinancing process — all of which we are more than happy to share with you. Your rental property loan, whether for a vacation rental or a tenant/residential rental, could greatly benefit from working with us for refinancing — which means your overall financial portfolio could also improve. Print and fill out our application form, contact our team with any additional questions you have, and get started on refinancing your non-recourse loan! We look forward to hearing from you.