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America’s IRA Non-Recourse Lender
IRA Non-Recourse
Loans in all 50 States
Your Self-Directed IRA can purchase investment real estate as another form of a tax-sheltered retirement investment (consult your tax advisor). Using debt non recourse financing to purchase these real estate IRA investments allows for diversification without tying up all of your IRA funds.
The IRS requires a non-recourse loan for all real estate purchases that use leverage with a self-directed IRA. North American Savings Bank is America's IRA Non-Recourse Lender that specializes in helping you obtain debt non recourse loans which are used with a Self-Directed IRA.
NASB offers a unique financing program for the purchase of rental property with a real estate IRA. Loan approval is generally within 48 hours of receipt of a full and complete NASB application. Non recourse financing is subject to a satisfactory appraisal, intention of property, and verification of self-directed IRA funds for closing. Click here for Frequently Asked Questions on non recourse debt financing with respect to real estate IRA investments.
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| 1-4 Family | Multifamily | |
| Product | 5/1 ARM and 30 Year Fixed | 5/1 ARM and 30 Year Fixed |
| Max LTV | 70% | 65% |
| Max Term | 30 years | 25 years |
| DSCR** | 1.0x | 1.3x |
| Min. Loan Amt. | $50,000 | $50,000 |
Ineligible Properties: Speculative purchases, 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, and commercial property. Square footage must be 750+ (per unit) for Condos and 900+ (per unit) for all other properties.
*Condominiums: Loan to Value for Condos will be between 50%-60% and the net operating income must exceed the annual debt service (annual principal and interest mortgage payment) by 20%. 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 2nd homes (versus tenant occupied). Condos not meeting these criteria are not eligible under our non-recourse program. IRA Condo Questionnaire Please complete before signing purchase contract.
* Price appreciation: If the real estate has sold within the past 3 years and the property has appreciated more than 10% annually, the DSCR must be 1.2 times and the LTV will be 50-65%.
** DSCR: Debt service coverage ratio = net operating income / annual debt service
Requirements for IRA Debt Financing:
- Purchase transactions for investment property only;
- IRA assets to be managed by a custodian in a self directed IRA or SEP.
- IRA assets must be verified for purchase and reserves. IRA reserve requirement may be up to 20% of the loan amount, to be available in the event of insufficient cash flow to pay operating expenses and mortgage payments;
- No employment or income verification required;
Documentation Required for Loan Approval:
- Completed NASB loan application (application)
- Current detailed Rent Roll or copies of signed leases;
- Most recent asset statement verifying IRA assets for purchase and reserves;
- Purchase/Sale contract, signed by the IRA account holder and the custodian. The contract must show the buyer to be in the name of the IRA;
- Appraisal fee required at the time of loan application for 1-4 family;
To learn more about investing in real estate through a Self Directed IRA, contact one of these companies: (*Click on the PDF logo next to the Custodian/Administrator to print off their Real Estate IRA Investment Authorization Form)
(NASB) does not provide, and is not
responsible for, the product, service or overall website content available at
third-party sites. In addition, (NASB's)
privacy policies do not apply to linked websites and viewers should consult the
privacy disclosures on that site for further information.
(NASB) does not receive any compensation from these links.
IRS Publication 590
North American Savings Bank, F.S.B. is not an investment advisor, and is not qualified to provide advice on IRA rules, regulations, or eligibility requirements. Please consult with your tax and investment advisors.
| Jason Zook 10950 El Monte, Suite 210 Overland Park, KS 66211 Phone: 913-327-2042 Toll Free: 866-735-6272 Fax: 913-339-9530 Email: jzook@nasb.com |
Matt Allen 10950 El Monte, Suite 210 Overland Park, KS 66211 Phone: 913-327-2041 Toll Free: 866-735-6272 Fax: 913-339-9530 Email: mallen@nasb.com |
Jackie Watts 789 NE Rice Road Lee's Summit, MO 64086 Phone: 816-347-4225 Toll Free: 866-735-6272 Fax: 816-347-4210 Email: jwatts@nasb.com |
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North American Savings Bank, F.S.B • Member FDIC • Equal Housing Lender