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)
Send us your application and supporting documents. We’ll usually get back to you within 48 hours from receiving your application
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.
If this is your first time applying to refinance a non-recourse loan (or first time applying with First Western Federal Savings Bank), you likely have questions. Take a look at some frequently asked questions regarding the refinancing process to gain a better understanding of how it all works. As always, if you still have questions, we’d be more than happy to help — fill out our contact form or give us a call!
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
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.
No. You can have a non-recourse loan through another lender, or you can even own the property entirely and have no debt.
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.
If you qualify for refinancing, there’s a solid chance that your existing interest rates can be lowered or term extended. This means less expensive monthly payments, giving you a chance to save more money.
You could absolutely save that money, as we just mentioned, but you also have the opportunity to re-purpose it in other ways. Those newfound funds could be used for upkeep improvements to your rental property or purchase another rental property within the retirement plan. Enhancing your existing rental property will make it more valuable, and could mean generating further income on it in the future.
If you have several properties, each with their own non-recourse loan, you could simplify the debt repayment structure by combining them into one loan. This makes it easier to make payments and keep track of your current mortgages.
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.