IRA Non-Recourse Loan FAQs

A non-recourse loan is one in which the IRA account holder is not personally liable for repayment of the loan. The security instruments allow no recourse against the individual account holders or the balances of your IRA funds. In the event of default/foreclosure the lender can only look to the property as the sole source of repayment. The non-recourse lender cannot pursue other assets owned by the account holder or the IRA.

Our website offers a list of Self-Directed IRA Administrators who allow non-recourse loans. Please contact one of the administrators for more details. NASB does not represent or endorse any of these companies nor do they represent NASB. Please perform all prudent due diligence before setting up an account.

Allow 30-45 days from the date we receive your loan application and your purchase contract.

Single family detached residential, warrantable condos, PUDs, duplexes, 4-plexes, and multi-family (5 or more units).

Ineligible properties include: Residential with large acreage, raw land, farms, manufactured or log homes, *non-warrantable condos, condo-hotels, co-ops, time shares, hotels, senior or assisted living facilities, non-franchise restaurants, entertainment properties, mini-storage. Square footage must be 750+ (per unit) for condos and 900+ (per unit) for all other properties.

*Condominiums: Condos must meet the following minimum criteria to be considered warrantable. The project building must be 100% complete, including common areas. The units within the building must be 60% sold and 33% of all building units must be owner occupied or second homes (versus tenant occupied). Condos not meeting these criteria are not eligible under our non-recourse program.

Yes. Discuss the LLC structure with your legal/tax advisor or an IRA administrator.

Yes, the funds would be distributed back into the IRA. This allows you the option of purchasing more assets within your IRA.

Just email us here or contact an IRA representative at 816-508-2398.

NASB offers an unique financing program designed for the non-recourse financing requirements for IRA investments, and the application process is easy. Loan approval is generally within 48 hours of receipt of a complete application, and is subject to appraisal and verification of IRA funds for closing.

NASB will quote interest rates on a case by case basis of the collateral type and down payment. The following fees (subject to change without notice) and costs apply:

1. 1% origination fee to NASB
2. $485 underwriting fee to NASB
3. $410 processing fee to NASB
4. $10.00 Flood Certification fee
5. $750 Estimated appraisal fee (including rent comps), due at the time of application
6. $_____Settlement/escrow fee
7. $_____Title Insurance
8. $_____Recording fees
9. $_____Mortgage registration or other state fees (if applicable)
10. $_____Prepaid Interest and taxes*
11. $_____Initial Hazard Insurance Premium*
12. $200 Attorney Review Fee

*Escrows for taxes and hazard insurance are required. Additional costs may be incurred for commercial and multi-family properties.

1. Completed Property Eligibility Quote Form
2. Current detailed Rent Roll or copies of signed leases (leases or rent roll for currently unoccupied properties are not required)
3. Most recent asset statement verifying IRA assets for purchase and reserves
4. Purchase/Sales contract, signed by the IRA account holder and the administrator. The contract must show the buyer to be in the name of the IRA or LLC
5. Acceptable real estate appraisal for the property to be financed. Appraisal fee required at the time of loan application before NASB will order the real estate appraisal

A minimum loan amount of $175,000 is required to apply. Exceptions include mortgage products for properties located within the Greater Kansas City metro and surrounding areas. Contact a NASB Loan Officer for details on the excluded areas and/or zip codes.