Non-Recourse Loan Experts

One of the Nation's Leading IRA Non-Recourse Loan Lenders

Contact Us Today

  • Do not fill this form out if you're a solicitor.
  • This field is for validation purposes and should be left unchanged.

Expect Better With First Western Federal Savings Bank

We refer to ourselves as a “Common Sense Lender.” What do we mean by that? It’s simple. We’ll take a look at most all types of real estate investments, and if it makes sense – we do it. If you’re interested in applying for a non-recourse loan with your self-directed IRA, get in touch with our team today!

Invest-In-These-Features-To-Attract-Renters-Fast-5d0a753923059

Did you know…

Non-recourse loans are secured by collateral. Should the borrower default on the loan, the lender has no recourse other than the sale of the subject piece of real estate should the IRA default on the loan.
Some examples of acceptable properties are:

  • Single Family Dwellings
  • Multi Family Dwellings
  • Commercial Real Estate
  • Farms With Income (Rental or CRP Income)
  • Vacation Rental by Owner

First Western Federal Savings Bank will consider other collateral options on an individual basis. Examples include (but are not limited to) well-seasoned notes and mortgages.

Types of Collateral for Self-Directed IRA Non-Recourse Loans

We’re a bank and non-recourse lender that provides loans nationwide, but we still maintain our “small town feel.” We’re not just here to write another loan, we want to make sure it’s a good investment for you. Since 1979, we’ve been providing great customer service and honest conversations about self-directed IRAs and non-recourse loans. We’re here to help you achieve your real estate investment goals.

Acquiring a Non-Recourse Loan With Your Self-Directed IRA

When applying for a loan with your self-directed IRA, the loan needs to be structured as a non-recourse loan, and there are a few other restrictions to keep in mind (otherwise the IRS can decide that the loan doesn’t qualify for deferred tax).

Considerations For Self-Directed Non-Recourse Loans

  • You can’t borrow money from yourself: Borrowing from, selling, or lending to your IRA would be considered a conflict of interest, as well as any corporations, LLCs, or trusts that you may manage.
  • Prohibited parties: Your spouse, children, parents, or grandparents, as well as relatives of your spouse are prohibited from borrowing, selling, or lending to your IRA.
  • The loan must be in the IRA’s name: When First Western Federal Savings Bank issues you the loan, the check should be made out to your IRA, not to you personally.
  • You can’t sign a personal guarantee: A personal guarantee states that the lender is able to pursue your personal assets if the loan goes into default.
  • You can’t use personal funds to pay for the loan: Your IRA must have enough liquidity to pay for the mortgage, not your personal checking or savings accounts.
  • The loan must be structured as non-recourse debt: If the loan goes into default, the lender cannot come after your personal assets.

Contact us today and let’s discuss which types of collateral you can use with your self-directed IRA non-recourse loan.

Contact Us For More Information!

  • Do not fill this form out if you're a solicitor.
  • This field is for validation purposes and should be left unchanged.